Cloudflare Stock Market Value
NET Stock | USD 74.62 0.61 0.81% |
Symbol | Cloudflare |
Cloudflare Price To Book Ratio
Is Cloudflare's industry 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 Cloudflare. If investors know Cloudflare 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 Cloudflare listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.53) | Revenue Per Share 4.126 | Quarterly Revenue Growth 0.305 | Return On Assets (0.04) | Return On Equity (0.25) |
The market value of Cloudflare is measured differently than its book value, which is the value of Cloudflare that is recorded on the company's balance sheet. Investors also form their own opinion of Cloudflare's value that differs from its market value or its book value, called intrinsic value, which is Cloudflare'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 Cloudflare's market value can be influenced by many factors that don't directly affect Cloudflare'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 Cloudflare's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cloudflare is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cloudflare'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.
Cloudflare 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Cloudflare's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Cloudflare.
11/22/2023 |
| 05/20/2024 |
If you would invest 0.00 in Cloudflare on November 22, 2023 and sell it all today you would earn a total of 0.00 from holding Cloudflare or generate 0.0% return on investment in Cloudflare over 180 days. Cloudflare is related to or competes with Palo Alto, Zscaler, Okta, Adobe Systems, Crowdstrike Holdings, MongoDB, and Palantir TechnologiesInc. CloudFlare, Inc. operates as a cloud services provider that delivers a range of services to businesses worldwide More
Cloudflare Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Cloudflare's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Cloudflare upside and downside potential and time the market with a certain degree of confidence.
Information Ratio | (0.20) | |||
Maximum Drawdown | 20.98 | |||
Value At Risk | (3.34) | |||
Potential Upside | 3.32 |
Cloudflare Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Cloudflare's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Cloudflare's standard deviation. In reality, there are many statistical measures that can use Cloudflare historical prices to predict the future Cloudflare's volatility.Risk Adjusted Performance | (0.09) | |||
Jensen Alpha | (0.57) | |||
Total Risk Alpha | (0.89) | |||
Treynor Ratio | (0.39) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Cloudflare's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Cloudflare Backtested Returns
Cloudflare secures Sharpe Ratio (or Efficiency) of -0.13, which signifies that the company had a -0.13% return per unit of risk over the last 3 months. Cloudflare exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Cloudflare's Risk Adjusted Performance of (0.09), mean deviation of 1.85, and Standard Deviation of 2.83 to double-check the risk estimate we provide. The firm shows a Beta (market volatility) of 1.18, which signifies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Cloudflare will likely underperform. Cloudflare has an expected return of -0.38%. Please make sure to confirm Cloudflare total risk alpha, skewness, as well as the relationship between the Skewness and day median price , to decide if Cloudflare performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.84 |
Excellent reverse predictability
Cloudflare has excellent reverse predictability. Overlapping area represents the amount of predictability between Cloudflare time series from 22nd of November 2023 to 20th of February 2024 and 20th of February 2024 to 20th of May 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Cloudflare price movement. The serial correlation of -0.84 indicates that around 84.0% of current Cloudflare price fluctuation can be explain by its past prices.
Correlation Coefficient | -0.84 | |
Spearman Rank Test | -0.57 | |
Residual Average | 0.0 | |
Price Variance | 67.2 |
Cloudflare lagged returns against current returns
Autocorrelation, which is Cloudflare stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Cloudflare's stock expected returns. We can calculate the autocorrelation of Cloudflare returns to help us make a trade decision. For example, suppose you find that Cloudflare has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
Timeline |
Cloudflare regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Cloudflare stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Cloudflare stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Cloudflare stock over time.
Current vs Lagged Prices |
Timeline |
Cloudflare Lagged Returns
When evaluating Cloudflare's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Cloudflare stock have on its future price. Cloudflare autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Cloudflare autocorrelation shows the relationship between Cloudflare stock current value and its past values and can show if there is a momentum factor associated with investing in Cloudflare.
Regressed Prices |
Timeline |
Pair Trading with Cloudflare
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 Cloudflare 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 Cloudflare will appreciate offsetting losses from the drop in the long position's value.Moving together with Cloudflare Stock
0.64 | S | SentinelOne Financial Report 6th of June 2024 | PairCorr |
Moving against Cloudflare Stock
0.67 | NN | Nextnav Acquisition Corp | PairCorr |
0.49 | BB | BlackBerry Financial Report 26th of June 2024 | PairCorr |
The ability to find closely correlated positions to Cloudflare could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cloudflare 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 Cloudflare - 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 Cloudflare to buy it.
The correlation of Cloudflare 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 Cloudflare moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cloudflare 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 Cloudflare 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.Check out Cloudflare Correlation, Cloudflare Volatility and Cloudflare Alpha and Beta module to complement your research on Cloudflare. For more information on how to buy Cloudflare Stock please use our How to Invest in Cloudflare guide.Note that the Cloudflare information on this page should be used as a complementary analysis to other Cloudflare's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Complementary Tools for Cloudflare Stock analysis
When running Cloudflare's price analysis, check to measure Cloudflare'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 Cloudflare is operating at the current time. Most of Cloudflare's value examination focuses on studying past and present price action to predict the probability of Cloudflare's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cloudflare's price. Additionally, you may evaluate how the addition of Cloudflare to your portfolios can decrease your overall portfolio volatility.
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Cloudflare technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.