Bank Of Montreal Stock Story


USD 103.91  1.90  1.86%   

14% of stocks are less volatile than Bank Of Montreal, and above 99% of all equities are expected to generate higher returns over the next 90 days. While many risk-averse institutional investors are getting carried away by overanalyzing financial services space, it is reasonable to outline Bank Of Montreal. We are going to inspect if the current expected returns justify Bank Of Montreal's volatility. Bank Of Montreal's very low volatility may have no significant impact on the stock's value as we estimate Bank Of Montreal as currently undervalued. The real value, based on our calculations, is getting close to 114.16 per share.
Published over two months ago
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Breaking down Bank Of Montreal volatility

Bank Of Montreal has roughly 329.5 B in cash with (34.59 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 508.13.
Volatility is a rate at which the price of Bank Of Montreal or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Bank Of Montreal may increase or decrease. In other words, similar to Bank Of Montreal's beta indicator, it measures the risk of Bank Of Montreal and helps estimate the fluctuations that may happen in a short period of time. So if prices of Bank Of Montreal fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

How important is Bank Of Montreal's Liquidity

Bank Of Montreal financial leverage refers to using borrowed capital as a funding source to finance Bank Of Montreal ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bank Of Montreal financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Bank Of Montreal's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Bank Of Montreal, but it might be worth checking our own buy vs. sell analysis

Bank Of Montreal Volatility Drivers

Bank Of Montreal unsystematic risk is unique to Bank Of Montreal and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Bank Of Montreal you can also buy Alphabet Cl A. You can also mitigate this risk by investing in the banks—diversified sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Bank Of Montreal important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Bank Of Montreal income statement and balance sheet. Here are more details about Bank Of Montreal volatility.
Click cells to compare fundamentals

Breaking it down

The entity reported the last year's revenue of 28.06 B. Total Income to common stockholders was 8.43 B with profit before taxes, overhead, and interest of 27.06 B.
 2019 2020 2021 2022 (projected)
Net Income5.1 B7.75 B8.92 B7.53 B
Gross Profit25.19 B27.19 B31.26 B28.47 B

Bank Of Montreal has 95 percent odds to go over $102 this year

Latest Jensen Alpha is up to -0.03. Price may slide again. Bank Of Montreal exhibits very low volatility with skewness of 0.02 and kurtosis of 0.11. However, we advise investors to further study Bank Of Montreal technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bank Of Montreal's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bank Of Montreal's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Bank Of Montreal Implied Volatility

Bank Of Montreal's implied volatility exposes the market's sentiment of Bank Of Montreal stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Bank Of Montreal's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Bank Of Montreal stock will not fluctuate a lot when Bank Of Montreal's options are near their expiration.

Our Conclusion on Bank Of Montreal

Whereas few other entities in the banks—diversified industry are either recovering or due for a correction, Bank Of Montreal may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 24th of May 2022, our analysis shows that Bank Of Montreal almost mirrors the market. The company is undervalued and projects average probability of distress for the next 2 years. Our primary 90 days buy-sell recommendation on the company is Strong Buy.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Bank Of Montreal. Please refer to our Terms of Use for any information regarding our disclosure principles.

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