Capital One Price To Earning vs. Current Valuation
| COF Stock | MXN 3,909 79.26 2.07% |
For Capital One profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Capital One to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Capital One Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Capital One's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Capital One Financial over time as well as its relative position and ranking within its peers.
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Capital One Financial Current Valuation vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Capital One's current stock value. Our valuation model uses many indicators to compare Capital One value to that of its competitors to determine the firm's financial worth. Capital One Financial is rated below average in price to earning category among its peers. It also is rated below average in current valuation category among its peers reporting about 10,655,695,185 of Current Valuation per Price To Earning. Comparative valuation analysis is a catch-all model that can be used if you cannot value Capital One by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Capital One's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Capital Current Valuation vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Capital One |
| = | 143.82 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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.
Capital One |
| = | 1.53 T |
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.
Capital Current Valuation vs Competition
Capital One Financial is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Credit Services industry is currently estimated at about 5.56 Trillion. Capital One totals roughly 1.53 Trillion in current valuation claiming about 28% of stocks in Credit Services industry.
Capital One Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Capital One, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Capital One will eventually generate negative long term returns. The profitability progress is the general direction of Capital One's change in net profit over the period of time. It can combine multiple indicators of Capital One, 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.
Capital One Financial Corporation operates as the bank holding company for the Capital One Bank , National Association and Capital One, National Association, which provides various financial products and services in the United States, the United Kingdom, and Canada. Capital One Financial Corporation was founded in 1988 and is headquartered in McLean, Virginia. Capital One operates under Credit Services classification in Mexico and is traded on Mexico Stock Exchange. It employs 48800 people.
Capital Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Capital One. 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 Capital One 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 Capital One's important profitability drivers and their relationship over time.
Use Capital One 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 Capital One 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 Capital One will appreciate offsetting losses from the drop in the long position's value.Capital One Pair Trading
Capital One Financial Pair Trading Analysis
The ability to find closely correlated positions to Capital One could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Capital One 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 Capital One - 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 Capital One Financial to buy it.
The correlation of Capital One 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 Capital One moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Capital One Financial 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 Capital One 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 Capital One position
In addition to having Capital One 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?
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Additional Tools for Capital Stock Analysis
When running Capital One's price analysis, check to measure Capital One's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Capital One is operating at the current time. Most of Capital One's value examination focuses on studying past and present price action to predict the probability of Capital One's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Capital One's price. Additionally, you may evaluate how the addition of Capital One to your portfolios can decrease your overall portfolio volatility.