NOV Cash And Equivalents vs. Beta
| NOV Stock | USD 15.99 0.01 0.06% |
Cash And Equivalents | First Reported 2010-12-31 | Previous Quarter 962.1 M | Current Value 1.1 B | Quarterly Volatility 193.9 M |
For NOV profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NOV to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NOV Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NOV's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NOV Inc over time as well as its relative position and ranking within its peers.
NOV |
Is Oil & Gas Equipment & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NOV. If investors know NOV will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NOV listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.138 | Dividend Share 0.25 | Earnings Share 2.7 | Revenue Per Share 22.616 | Quarterly Revenue Growth 0.003 |
The market value of NOV Inc is measured differently than its book value, which is the value of NOV that is recorded on the company's balance sheet. Investors also form their own opinion of NOV's value that differs from its market value or its book value, called intrinsic value, which is NOV's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NOV's market value can be influenced by many factors that don't directly affect NOV's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between NOV's value and its price as these two are different measures arrived at by different means. Investors typically determine if NOV is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NOV's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
NOV Inc Beta vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NOV's current stock value. Our valuation model uses many indicators to compare NOV value to that of its competitors to determine the firm's financial worth. NOV Inc is considered to be number one stock in cash and equivalents category among its peers. It is rated below average in beta category among its peers . The ratio of Cash And Equivalents to Beta for NOV Inc is about 638,590,203 . At this time, NOV's Cash And Equivalents is fairly stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value NOV by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.NOV Beta vs. Cash And Equivalents
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
NOV |
| = | 1.07 B |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
NOV |
| = | 1.67 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
NOV Beta Comparison
NOV is currently under evaluation in beta category among its peers.
Beta Analysis
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, NOV will likely underperform.
NOV Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in NOV, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NOV will eventually generate negative long term returns. The profitability progress is the general direction of NOV's change in net profit over the period of time. It can combine multiple indicators of NOV, 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -1.5 B | -1.4 B | |
| Operating Income | 651 M | 647.4 M | |
| Income Before Tax | 612 M | 365.8 M | |
| Total Other Income Expense Net | -39 M | -41 M | |
| Net Income | 993 M | 1 B | |
| Income Tax Expense | -373 M | -354.4 M | |
| Net Income Applicable To Common Shares | 139.5 M | 170.8 M | |
| Net Income From Continuing Ops | 489 M | 513.5 M | |
| Non Operating Income Net Other | 46.8 M | 49.1 M | |
| Interest Income | 28 M | 33 M | |
| Net Interest Income | -58 M | -60.9 M | |
| Change To Netincome | 17.2 M | 16.4 M | |
| Net Income Per Share | 2.53 | 2.65 | |
| Income Quality | 0.14 | 0.14 | |
| Net Income Per E B T | 1.62 | 1.00 |
NOV Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NOV. 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 NOV 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 NOV's important profitability drivers and their relationship over time.
Use NOV 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 NOV 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 NOV will appreciate offsetting losses from the drop in the long position's value.NOV Pair Trading
NOV Inc Pair Trading Analysis
The ability to find closely correlated positions to NOV could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NOV 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 NOV - 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 NOV Inc to buy it.
The correlation of NOV 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 NOV moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NOV 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 NOV 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 NOV position
In addition to having NOV 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 Corporate Bonds Funds Thematic Idea Now
Corporate Bonds Funds
Funds or Etfs investing in different types of corporate debt instruments. The Corporate Bonds Funds 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 Corporate Bonds Funds Theme or any other thematic opportunities.
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Additional Tools for NOV Stock Analysis
When running NOV's price analysis, check to measure NOV'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 NOV is operating at the current time. Most of NOV's value examination focuses on studying past and present price action to predict the probability of NOV's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NOV's price. Additionally, you may evaluate how the addition of NOV to your portfolios can decrease your overall portfolio volatility.