Dow Shares Owned By Insiders vs. Current Valuation
| 2OY Stock | EUR 41.60 0.36 0.86% |
For Dow profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dow to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dow Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dow's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dow Inc over time as well as its relative position and ranking within its peers.
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Dow Inc Current Valuation vs. Shares Owned By Insiders Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Dow's current stock value. Our valuation model uses many indicators to compare Dow value to that of its competitors to determine the firm's financial worth. Dow Inc is number one stock in shares owned by insiders category among its peers. It is rated third in current valuation category among its peers reporting about 461,936,398,540 of Current Valuation per Shares Owned By Insiders. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Dow's earnings, one of the primary drivers of an investment's value.Dow Current Valuation vs. Shares Owned By Insiders
Shares Owned by Insiders show the percentage of outstanding shares owned by insiders (such as principal officers or members of the board of directors) or private individuals and entities with over 5% of the total shares outstanding. Company executives or private individuals with access to insider information share information about a firm's operations that is not available to the general public.
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| = | 0.10 % |
Although the research on effects of insider trading on prices and volatility is still relatively inconclusive, and investors are advised to pay close attention to the distribution of equities among company's stakeholders to avoid many problems associated with the disclosure of price-sensitive information.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
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| = | 46.19 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Dow Current Valuation vs Competition
Dow Inc is rated third in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Chemicals industry is presently estimated at about 170.84 Billion. Dow totals roughly 46.19 Billion in current valuation claiming about 27% of stocks in Chemicals industry.
Dow Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Dow, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dow will eventually generate negative long term returns. The profitability progress is the general direction of Dow's change in net profit over the period of time. It can combine multiple indicators of Dow, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Dow Inc. provides various materials science solutions for packaging, infrastructure, mobility, and consumer applications in the United States, Canada, Europe, the Middle East, Africa, India, the Asia Pacific, and Latin America. Dow Inc. was incorporated in 2018 and is headquartered in Midland, Michigan. DOW INC operates under Chemicals classification in Germany and is traded on Frankfurt Stock Exchange. It employs 35700 people.
Dow Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Dow. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Dow position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Dow's important profitability drivers and their relationship over time.
Use Dow in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Dow position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dow will appreciate offsetting losses from the drop in the long position's value.Dow Pair Trading
Dow Inc Pair Trading Analysis
The ability to find closely correlated positions to Dow could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dow when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Dow - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Dow Inc to buy it.
The correlation of Dow is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Dow moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dow Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Dow can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Dow position
In addition to having Dow in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Defense Thematic Idea Now
Defense
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Defense theme has 16 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Defense Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Dow Stock
When determining whether Dow Inc is a strong investment it is important to analyze Dow's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Dow's future performance. For an informed investment choice regarding Dow Stock, refer to the following important reports:Check out Trending Equities. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
To fully project Dow's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Dow Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Dow's income statement, its balance sheet, and the statement of cash flows.