LGI Homes Current Valuation vs. Market Capitalization
| LG1 Stock | 104.00 2.00 1.89% |
For LGI Homes profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LGI Homes to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LGI Homes utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LGI Homes's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LGI Homes over time as well as its relative position and ranking within its peers.
LGI |
LGI Homes Market Capitalization vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining LGI Homes's current stock value. Our valuation model uses many indicators to compare LGI Homes value to that of its competitors to determine the firm's financial worth. LGI Homes is rated below average in current valuation category among its peers. It also is rated below average in market capitalization category among its peers creating about 1.02 of Market Capitalization per Current Valuation. 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 LGI Homes' earnings, one of the primary drivers of an investment's value.LGI Market Capitalization vs. Current Valuation
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.
LGI Homes |
| = | 3.36 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.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
LGI Homes |
| = | 3.43 B |
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.
LGI Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on LGI Homes. 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 LGI Homes 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 LGI Homes' important profitability drivers and their relationship over time.
Use LGI Homes 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 LGI Homes 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 LGI Homes will appreciate offsetting losses from the drop in the long position's value.LGI Homes Pair Trading
LGI Homes Pair Trading Analysis
The ability to find closely correlated positions to LGI Homes could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace LGI Homes 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 LGI Homes - 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 LGI Homes to buy it.
The correlation of LGI Homes 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 LGI Homes moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LGI Homes 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 LGI Homes 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 LGI Homes position
In addition to having LGI Homes 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 Drugs Thematic Idea Now
Drugs
Companies involved in medical and pharmaceutical drug research, manufacturing, and delivery. The Drugs theme has 45 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 Drugs Theme or any other thematic opportunities.
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Additional Tools for LGI Stock Analysis
When running LGI Homes' price analysis, check to measure LGI Homes' 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 LGI Homes is operating at the current time. Most of LGI Homes' value examination focuses on studying past and present price action to predict the probability of LGI Homes' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move LGI Homes' price. Additionally, you may evaluate how the addition of LGI Homes to your portfolios can decrease your overall portfolio volatility.