Dover Story

DOV -  USA Stock  

USD 152.91  0.24  0.16%

Dover Corp is generating 0.2254% of daily returns assuming volatility of 1.323% on return distribution over 90 days investment horizon. Although many risk-takers are getting more into industrials space, some of us are not very happy with Dover Corp's current volatility. We will recap how risky is to take a position in Dover Corp at this time. Dover Corp's very low volatility may have no significant impact on the stock's value as we estimate Dover Corp as currently overvalued. The real value, based on our calculations, is getting close to 123.44 per share.
Published over two weeks ago
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Is Dover Corp (NYSE:DOV) climb real based on latest volatility?
Dover Corp has roughly 513.08 M in cash with 1.1 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.57.
Volatility is a rate at which the price of Dover Corp 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 Dover Corp may increase or decrease. In other words, similar to Dover's beta indicator, it measures the risk of Dover Corp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Dover Corp 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 Dover Corp's Liquidity

Dover Corp financial leverage refers to using borrowed capital as a funding source to finance Dover Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Dover Corp 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 Dover Corp'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 Dover Corp, but it might be worth checking our own buy vs. sell analysis

Dover Corp Volatility Drivers

Dover Corp unsystematic risk is unique to Dover Corp 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 Dover Corp you can also buy Crane Company. You can also mitigate this risk by investing in the specialty industrial machinery 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 Dover Corp 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 Dover Corp income statement and balance sheet. Here are more details about Dover volatility.