Darden Restaurants Stock Market Value
DRI Stock | USD 155.90 1.35 0.87% |
Symbol | Darden |
Darden Restaurants Price To Book Ratio
Is Darden Restaurants' 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 Darden Restaurants. If investors know Darden 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 Darden Restaurants 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 0.11 | Dividend Share 5.14 | Earnings Share 8.52 | Revenue Per Share 93.095 | Quarterly Revenue Growth 0.068 |
The market value of Darden Restaurants is measured differently than its book value, which is the value of Darden that is recorded on the company's balance sheet. Investors also form their own opinion of Darden Restaurants' value that differs from its market value or its book value, called intrinsic value, which is Darden Restaurants' 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 Darden Restaurants' market value can be influenced by many factors that don't directly affect Darden Restaurants' 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 Darden Restaurants' value and its price as these two are different measures arrived at by different means. Investors typically determine if Darden Restaurants is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Darden Restaurants' 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.
Darden Restaurants '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 Darden Restaurants' 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 Darden Restaurants.
03/25/2024 |
| 04/24/2024 |
If you would invest 0.00 in Darden Restaurants on March 25, 2024 and sell it all today you would earn a total of 0.00 from holding Darden Restaurants or generate 0.0% return on investment in Darden Restaurants over 30 days. Darden Restaurants is related to or competes with Dine Brands, Bloomin Brands, BJs Restaurants, Cheesecake Factory, Yum China, Wendys, and Dominos Pizza. Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and ... More
Darden Restaurants 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 Darden Restaurants' 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 Darden Restaurants upside and downside potential and time the market with a certain degree of confidence.
Information Ratio | (0.09) | |||
Maximum Drawdown | 9.35 | |||
Value At Risk | (1.85) | |||
Potential Upside | 1.63 |
Darden Restaurants Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Darden Restaurants' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Darden Restaurants' standard deviation. In reality, there are many statistical measures that can use Darden Restaurants historical prices to predict the future Darden Restaurants' volatility.Risk Adjusted Performance | (0.01) | |||
Jensen Alpha | (0.10) | |||
Total Risk Alpha | (0.21) | |||
Treynor Ratio | (0.05) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Darden Restaurants' 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.
Darden Restaurants Backtested Returns
Darden Restaurants secures Sharpe Ratio (or Efficiency) of -0.0295, which denotes the company had a -0.0295% return per unit of risk over the last 3 months. Darden Restaurants exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Darden Restaurants' Standard Deviation of 1.34, mean deviation of 0.9178, and Variance of 1.78 to check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.78, which means possible diversification benefits within a given portfolio. As returns on the market increase, Darden Restaurants' returns are expected to increase less than the market. However, during the bear market, the loss of holding Darden Restaurants is expected to be smaller as well. Darden Restaurants has an expected return of -0.0403%. Please make sure to confirm Darden Restaurants potential upside, as well as the relationship between the daily balance of power and price action indicator , to decide if Darden Restaurants performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.16 |
Very weak predictability
Darden Restaurants has very weak predictability. Overlapping area represents the amount of predictability between Darden Restaurants time series from 25th of March 2024 to 9th of April 2024 and 9th of April 2024 to 24th 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 Darden Restaurants price movement. The serial correlation of 0.16 indicates that over 16.0% of current Darden Restaurants price fluctuation can be explain by its past prices.
Correlation Coefficient | 0.16 | |
Spearman Rank Test | 0.05 | |
Residual Average | 0.0 | |
Price Variance | 2.94 |
Darden Restaurants lagged returns against current returns
Autocorrelation, which is Darden Restaurants 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 Darden Restaurants' stock expected returns. We can calculate the autocorrelation of Darden Restaurants returns to help us make a trade decision. For example, suppose you find that Darden Restaurants 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 |
Darden Restaurants 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 Darden Restaurants stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Darden Restaurants stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Darden Restaurants stock over time.
Current vs Lagged Prices |
Timeline |
Darden Restaurants Lagged Returns
When evaluating Darden Restaurants' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Darden Restaurants stock have on its future price. Darden Restaurants 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, Darden Restaurants autocorrelation shows the relationship between Darden Restaurants stock current value and its past values and can show if there is a momentum factor associated with investing in Darden Restaurants.
Regressed Prices |
Timeline |
Pair Trading with Darden Restaurants
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 Darden Restaurants 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 Darden Restaurants will appreciate offsetting losses from the drop in the long position's value.Moving together with Darden Stock
0.73 | FUN | Cedar Fair LP Financial Report 2nd of May 2024 | PairCorr |
Moving against Darden Stock
0.68 | LE | Lands End Financial Report 6th of June 2024 | PairCorr |
0.47 | WEN | The Wendys Financial Report 8th of May 2024 | PairCorr |
The ability to find closely correlated positions to Darden Restaurants could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Darden Restaurants 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 Darden Restaurants - 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 Darden Restaurants to buy it.
The correlation of Darden Restaurants 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 Darden Restaurants moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Darden Restaurants 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 Darden Restaurants 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 Darden Restaurants Correlation, Darden Restaurants Volatility and Darden Restaurants Alpha and Beta module to complement your research on Darden Restaurants. For more detail on how to invest in Darden Stock please use our How to Invest in Darden Restaurants guide.You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Complementary Tools for Darden Stock analysis
When running Darden Restaurants' price analysis, check to measure Darden Restaurants' 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 Darden Restaurants is operating at the current time. Most of Darden Restaurants' value examination focuses on studying past and present price action to predict the probability of Darden Restaurants' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Darden Restaurants' price. Additionally, you may evaluate how the addition of Darden Restaurants to your portfolios can decrease your overall portfolio volatility.
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Darden Restaurants 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.