Enact Holdings Profitability Analysis
| ACT Etf | USD 31.48 0.17 0.54% |
For Enact Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Enact Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Enact Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Enact Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Enact Holdings over time as well as its relative position and ranking within its peers.
Enact |
The market value of Enact Holdings is measured differently than its book value, which is the value of Enact that is recorded on the company's balance sheet. Investors also form their own opinion of Enact Holdings' value that differs from its market value or its book value, called intrinsic value, which is Enact Holdings' 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 Enact Holdings' market value can be influenced by many factors that don't directly affect Enact Holdings' 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 Enact Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Enact Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Enact Holdings' 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.
Enact Holdings Price To Book vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Enact Holdings's current stock value. Our valuation model uses many indicators to compare Enact Holdings value to that of its competitors to determine the firm's financial worth. Enact Holdings is rated below average in price to earning as compared to similar ETFs. It is rated below average in price to book as compared to similar ETFs fabricating about 0.18 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Enact Holdings is roughly 5.61 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Enact Holdings by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Enact Holdings' Etf. 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. 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 Enact Holdings' earnings, one of the primary drivers of an investment's value.Enact Price To Book 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.
Enact Holdings |
| = | 5.66 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.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Enact Holdings |
| = | 1.01 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Enact Price To Book Comparison
Enact Holdings is currently under evaluation in price to book as compared to similar ETFs.
Enact Holdings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Enact Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Enact Holdings will eventually generate negative long term returns. The profitability progress is the general direction of Enact Holdings' change in net profit over the period of time. It can combine multiple indicators of Enact Holdings, 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.
Enact Holdings, Inc. operates as a private mortgage insurance company in the United States. Enact Holdings is listed under InsuranceSpecialty in the United States and is traded on NASDAQ Exchange exchange.
Enact Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Enact Holdings. 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 Enact Holdings 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 Enact Holdings' important profitability drivers and their relationship over time.
Enact Holdings Profitability Trends
Enact Holdings profitability trend refers to the progression of profit or loss within a business. An upward trend means that Enact Holdings' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Enact Holdings' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Use Enact Holdings 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 Enact Holdings 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 Enact Holdings will appreciate offsetting losses from the drop in the long position's value.Enact Holdings Pair Trading
Enact Holdings Pair Trading Analysis
The ability to find closely correlated positions to Enact Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Enact Holdings 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 Enact Holdings - 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 Enact Holdings to buy it.
The correlation of Enact Holdings 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 Enact Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Enact Holdings 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 Enact Holdings 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 Enact Holdings position
In addition to having Enact Holdings 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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Check out Trending Equities. For more information on how to buy Enact Etf please use our How to Invest in Enact Holdings guide.Note that the Enact Holdings information on this page should be used as a complementary analysis to other Enact Holdings' 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
To fully project Enact Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Enact Holdings 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 Enact Holdings' income statement, its balance sheet, and the statement of cash flows.