Discover Financial Services Stock Market Value
| DFS Stock | USD 124.27 4.38 3.65% |
| Symbol | Discover |
Discover Financial Price To Book Ratio
Is Discover Financial'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 Discover Financial. If investors know Discover 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 Discover Financial 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 (0.69) | Dividend Share 2.8 | Earnings Share 8.79 | Revenue Per Share 39.45 | Quarterly Revenue Growth 0.294 |
The market value of Discover Financial is measured differently than its book value, which is the value of Discover that is recorded on the company's balance sheet. Investors also form their own opinion of Discover Financial's value that differs from its market value or its book value, called intrinsic value, which is Discover Financial'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 Discover Financial's market value can be influenced by many factors that don't directly affect Discover Financial'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 Discover Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Discover Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Discover Financial'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.
Discover Financial '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 Discover Financial'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 Discover Financial.
| 03/20/2024 |
| 04/19/2024 |
If you would invest 0.00 in Discover Financial on March 20, 2024 and sell it all today you would earn a total of 0.00 from holding Discover Financial Services or generate 0.0% return on investment in Discover Financial over 30 days. Discover Financial is related to or competes with Visa, PayPal Holdings, and Mastercard. Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment servi... More
Discover Financial 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 Discover Financial'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 Discover Financial Services upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.5 | |||
| Information Ratio | 0.0637 | |||
| Maximum Drawdown | 15.51 | |||
| Value At Risk | (2.43) | |||
| Potential Upside | 3.06 |
Discover Financial Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Discover Financial's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Discover Financial's standard deviation. In reality, there are many statistical measures that can use Discover Financial historical prices to predict the future Discover Financial's volatility.| Risk Adjusted Performance | 0.0637 | |||
| Jensen Alpha | 0.1727 | |||
| Total Risk Alpha | (0.02) | |||
| Sortino Ratio | 0.0644 | |||
| Treynor Ratio | 0.275 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Discover Financial'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.
Discover Financial Backtested Returns
Discover Financial appears to be very steady, given 3 months investment horizon. Discover Financial secures Sharpe Ratio (or Efficiency) of 0.18, which denotes the company had a 0.18% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Discover Financial Services, which you can use to evaluate the volatility of the firm. Please utilize Discover Financial's Downside Deviation of 2.5, coefficient of variation of 1101.29, and Mean Deviation of 1.49 to check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Discover Financial holds a performance score of 13. The firm shows a Beta (market volatility) of 0.8, which means possible diversification benefits within a given portfolio. As returns on the market increase, Discover Financial's returns are expected to increase less than the market. However, during the bear market, the loss of holding Discover Financial is expected to be smaller as well. Please check Discover Financial's value at risk, as well as the relationship between the skewness and day median price , to make a quick decision on whether Discover Financial's price patterns will revert.
Auto-correlation | -0.61 |
Very good reverse predictability
Discover Financial Services has very good reverse predictability. Overlapping area represents the amount of predictability between Discover Financial time series from 20th of March 2024 to 4th of April 2024 and 4th of April 2024 to 19th of April 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 Discover Financial price movement. The serial correlation of -0.61 indicates that roughly 61.0% of current Discover Financial price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.61 | |
| Spearman Rank Test | -0.45 | |
| Residual Average | 0.0 | |
| Price Variance | 5.02 |
Discover Financial lagged returns against current returns
Autocorrelation, which is Discover Financial 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 Discover Financial's stock expected returns. We can calculate the autocorrelation of Discover Financial returns to help us make a trade decision. For example, suppose you find that Discover Financial 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 |
Discover Financial 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 Discover Financial stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Discover Financial stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Discover Financial stock over time.
Current vs Lagged Prices |
| Timeline |
Discover Financial Lagged Returns
When evaluating Discover Financial's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Discover Financial stock have on its future price. Discover Financial 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, Discover Financial autocorrelation shows the relationship between Discover Financial stock current value and its past values and can show if there is a momentum factor associated with investing in Discover Financial Services.
Regressed Prices |
| Timeline |
Pair Trading with Discover Financial
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 Discover Financial 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 Discover Financial will appreciate offsetting losses from the drop in the long position's value.Moving together with Discover Stock
| 0.89 | AXP | American Express Earnings Call Today | PairCorr |
| 0.8 | SCHW | Charles Schwab Corp Normal Trading | PairCorr |
| 0.74 | ARES | Ares Management LP Financial Report 26th of April 2024 | PairCorr |
| 0.84 | C | Citigroup Financial Report 12th of July 2024 | PairCorr |
| 0.82 | L | Loews Corp | PairCorr |
Moving against Discover Stock
| 0.79 | HG | Hamilton Insurance Report 21st of October 2024 | PairCorr |
| 0.74 | DHIL | Diamond Hill Investment | PairCorr |
| 0.72 | FG | FG Annuities Life Financial Report 1st of May 2024 | PairCorr |
| 0.62 | AC | Associated Capital | PairCorr |
| 0.61 | BY | Byline Bancorp Earnings Call This Week | PairCorr |
The ability to find closely correlated positions to Discover Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Discover Financial 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 Discover Financial - 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 Discover Financial Services to buy it.
The correlation of Discover Financial 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 Discover Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Discover 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 Discover Financial 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 Discover Financial Correlation, Discover Financial Volatility and Discover Financial Alpha and Beta module to complement your research on Discover Financial. Note that the Discover Financial information on this page should be used as a complementary analysis to other Discover Financial'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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Complementary Tools for Discover Stock analysis
When running Discover Financial's price analysis, check to measure Discover Financial'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 Discover Financial is operating at the current time. Most of Discover Financial's value examination focuses on studying past and present price action to predict the probability of Discover Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Discover Financial's price. Additionally, you may evaluate how the addition of Discover Financial to your portfolios can decrease your overall portfolio volatility.
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |
Discover Financial 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.