NBT Bancorp Z Score vs. Beta
| NBTB Stock | USD 34.79 0.18 0.52% |
For NBT Bancorp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NBT Bancorp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NBT Bancorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NBT Bancorp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NBT Bancorp over time as well as its relative position and ranking within its peers.
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Is NBT Bancorp'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 NBT Bancorp. If investors know NBT 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 NBT Bancorp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of NBT Bancorp is measured differently than its book value, which is the value of NBT that is recorded on the company's balance sheet. Investors also form their own opinion of NBT Bancorp's value that differs from its market value or its book value, called intrinsic value, which is NBT Bancorp'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 NBT Bancorp's market value can be influenced by many factors that don't directly affect NBT Bancorp'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 NBT Bancorp's value and its price as these two are different measures arrived at by different means. Investors typically determine if NBT Bancorp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NBT Bancorp'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.
NBT Bancorp Beta vs. Z Score Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining NBT Bancorp's current stock value. Our valuation model uses many indicators to compare NBT Bancorp value to that of its competitors to determine the firm's financial worth. NBT Bancorp is currently under evaluation in z score category among related companies. It is rated below average in beta category among related companies . Comparative valuation analysis is a catch-all model that can be used if you cannot value NBT Bancorp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for NBT Bancorp's Stock. 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 NBT Bancorp's earnings, one of the primary drivers of an investment's value.NBT Beta vs. Z Score
Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
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To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
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.
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| = | 0.51 |
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.
NBT Beta Comparison
NBT Bancorp is currently under evaluation in beta category among related companies.
Beta Analysis
As returns on the market increase, NBT Bancorp's returns are expected to increase less than the market. However, during the bear market, the loss of holding NBT Bancorp is expected to be smaller as well.
NBT Bancorp Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in NBT Bancorp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NBT Bancorp will eventually generate negative long term returns. The profitability progress is the general direction of NBT Bancorp's change in net profit over the period of time. It can combine multiple indicators of NBT Bancorp, 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.
NBT Bancorp Inc., a financial holding company, provides commercial banking, retail banking, and wealth management services. NBT Bancorp Inc. was founded in 1856 and is headquartered in Norwich, New York. NBT Bancorp operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 1801 people.
NBT Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on NBT Bancorp. 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 NBT Bancorp 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 NBT Bancorp's important profitability drivers and their relationship over time.
Use NBT Bancorp 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 NBT Bancorp 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 NBT Bancorp will appreciate offsetting losses from the drop in the long position's value.NBT Bancorp Pair Trading
NBT Bancorp Pair Trading Analysis
The ability to find closely correlated positions to NBT Bancorp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NBT Bancorp 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 NBT Bancorp - 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 NBT Bancorp to buy it.
The correlation of NBT Bancorp 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 NBT Bancorp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NBT Bancorp 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 NBT Bancorp 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 NBT Bancorp position
In addition to having NBT Bancorp 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?
Run Housewares Thematic Idea Now
Housewares
Companies making housewares accessories and providing houseware services. The Housewares theme has 38 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Housewares Theme or any other thematic opportunities.
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Check out Correlation Analysis. For information on how to trade NBT Stock refer to our How to Trade NBT Stock guide.You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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When running NBT Bancorp's price analysis, check to measure NBT Bancorp'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 NBT Bancorp is operating at the current time. Most of NBT Bancorp's value examination focuses on studying past and present price action to predict the probability of NBT Bancorp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NBT Bancorp's price. Additionally, you may evaluate how the addition of NBT Bancorp to your portfolios can decrease your overall portfolio volatility.
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To fully project NBT Bancorp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of NBT Bancorp 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 NBT Bancorp's income statement, its balance sheet, and the statement of cash flows.