Erie Indemnity Stock Beta
ERIE Stock | USD 378.19 2.78 0.73% |
Erie Indemnity fundamentals help investors to digest information that contributes to Erie Indemnity's financial success or failures. It also enables traders to predict the movement of Erie Stock. The fundamental analysis module provides a way to measure Erie Indemnity's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Erie Indemnity stock.
Erie | Beta |
Erie Indemnity Company Beta Analysis
Erie Indemnity's 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.
Current Erie Indemnity Beta | 0.41 |
Most of Erie Indemnity's fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Erie Indemnity is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Erie Beta Driver Correlations
Understanding the fundamental principles of building solid financial models for Erie Indemnity is extremely important. It helps to project a fair market value of Erie Stock properly, considering its historical fundamentals such as Beta. Since Erie Indemnity's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Erie Indemnity's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Erie Indemnity's interrelated accounts and indicators.
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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.
Competition |
In accordance with the recently published financial statements, Erie Indemnity has a Beta of 0.412. This is 49.76% lower than that of the Insurance sector and 54.22% lower than that of the Financials industry. The beta for all United States stocks is notably lower than that of the firm.
Erie Beta Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Erie Indemnity's direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Erie Indemnity could also be used in its relative valuation, which is a method of valuing Erie Indemnity by comparing valuation metrics of similar companies.Erie Indemnity is currently under evaluation in beta category among related companies.
Erie Indemnity ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Erie Indemnity's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Erie Indemnity's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Erie Indemnity Institutional Holders
Institutional Holdings refers to the ownership stake in Erie Indemnity that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Erie Indemnity's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Erie Indemnity's value.Shares | Apg All Pensions Group | 2023-12-31 | 175.9 K | Morgan Stanley - Brokerage Accounts | 2023-09-30 | 163.4 K | Amvescap Plc. | 2023-12-31 | 151.5 K | Atlantic Union Bankshares Corp | 2023-09-30 | 148.1 K | Charles Schwab Investment Management Inc | 2023-09-30 | 133 K | Legal & General Group Plc | 2023-09-30 | 120.3 K | Amundi | 2023-09-30 | 110.9 K | Jpmorgan Chase & Co | 2023-09-30 | 102.6 K | Goldman Sachs Group Inc | 2023-09-30 | 98.6 K | Pnc Financial Services Group Inc | 2023-09-30 | 4.9 M | Blackrock Inc | 2023-12-31 | 2.5 M |
As returns on the market increase, Erie Indemnity's returns are expected to increase less than the market. However, during the bear market, the loss of holding Erie Indemnity is expected to be smaller as well.
Erie Fundamentals
Return On Equity | 0.29 | |||
Return On Asset | 0.15 | |||
Profit Margin | 0.14 % | |||
Operating Margin | 0.17 % | |||
Current Valuation | 19.58 B | |||
Shares Outstanding | 46.19 M | |||
Shares Owned By Insiders | 45.51 % | |||
Shares Owned By Institutions | 36.86 % | |||
Number Of Shares Shorted | 775.7 K | |||
Price To Earning | 46.37 X | |||
Price To Book | 11.99 X | |||
Price To Sales | 6.10 X | |||
Revenue | 3.26 B | |||
Gross Profit | 376.21 M | |||
EBITDA | 568.01 M | |||
Net Income | 446.06 M | |||
Cash And Equivalents | 147.47 M | |||
Cash Per Share | 2.82 X | |||
Debt To Equity | 0.03 % | |||
Current Ratio | 1.17 X | |||
Book Value Per Share | 31.80 X | |||
Cash Flow From Operations | 381.2 M | |||
Short Ratio | 6.43 X | |||
Earnings Per Share | 8.51 X | |||
Price To Earnings To Growth | 3.05 X | |||
Target Price | 115.0 | |||
Number Of Employees | 6.48 K | |||
Beta | 0.41 | |||
Market Capitalization | 19.74 B | |||
Total Asset | 2.51 B | |||
Retained Earnings | 2.8 B | |||
Working Capital | 189.45 M | |||
Current Asset | 635.15 M | |||
Current Liabilities | 445.7 M | |||
Annual Yield | 0.01 % | |||
Five Year Return | 2.18 % | |||
Net Asset | 2.51 B | |||
Last Dividend Paid | 4.85 |
About Erie Indemnity Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Erie Indemnity's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Erie Indemnity using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Erie Indemnity based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Erie Indemnity
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 Erie Indemnity 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 Erie Indemnity will appreciate offsetting losses from the drop in the long position's value.Moving together with Erie Stock
0.78 | AJG | Arthur J Gallagher Earnings Call This Week | PairCorr |
0.78 | AON | Aon PLC Financial Report 26th of April 2024 | PairCorr |
Moving against Erie Stock
0.76 | FANH | Fanhua Inc | PairCorr |
0.51 | RELI | Reliance Global Group | PairCorr |
0.46 | EHTH | eHealth Financial Report 14th of May 2024 | PairCorr |
0.44 | TIRX | Tian Ruixiang Holdings | PairCorr |
0.42 | GOCO | GoHealth Financial Report 13th of May 2024 | PairCorr |
The ability to find closely correlated positions to Erie Indemnity could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Erie Indemnity 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 Erie Indemnity - 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 Erie Indemnity to buy it.
The correlation of Erie Indemnity 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 Erie Indemnity moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Erie Indemnity 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 Erie Indemnity 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 Erie Indemnity Piotroski F Score and Erie Indemnity Altman Z Score analysis. For information on how to trade Erie Stock refer to our How to Trade Erie Stock 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 Erie Stock analysis
When running Erie Indemnity's price analysis, check to measure Erie Indemnity'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 Erie Indemnity is operating at the current time. Most of Erie Indemnity's value examination focuses on studying past and present price action to predict the probability of Erie Indemnity's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Erie Indemnity's price. Additionally, you may evaluate how the addition of Erie Indemnity to your portfolios can decrease your overall portfolio volatility.
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Is Erie Indemnity'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 Erie Indemnity. If investors know Erie 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 Erie Indemnity 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 0.697 | Dividend Share 4.845 | Earnings Share 8.51 | Revenue Per Share 70.773 | Quarterly Revenue Growth 0.167 |
The market value of Erie Indemnity is measured differently than its book value, which is the value of Erie that is recorded on the company's balance sheet. Investors also form their own opinion of Erie Indemnity's value that differs from its market value or its book value, called intrinsic value, which is Erie Indemnity'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 Erie Indemnity's market value can be influenced by many factors that don't directly affect Erie Indemnity'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 Erie Indemnity's value and its price as these two are different measures arrived at by different means. Investors typically determine if Erie Indemnity is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Erie Indemnity'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.