KKR Co Stock Story


USD 54.09  1.74  3.12%   

KKR Co is generating negative expected returns assuming volatility of 3.3346% on return distribution over 90 days investment horizon. As many old-fashioned traders are trying to avoid financial services space, it makes sense to sum up KKR Co LP a little further and try to understand its current volatility patterns. We will evaluate if the latest KKR Co price volatility suggests a bounce in June. KKR Co's seemingly stabilizing volatility may still impact the value of the stock as we estimate KKR Co as currently undervalued. The real value, based on our calculations, is getting close to 66.99 per share.
Published over three months ago
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Will KKR Co (NYSE:KKR) latest volatility spike continue?

KKR Co LP has roughly 13.52 B in cash with (5.36 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 23.11.
Volatility is a rate at which the price of KKR Co 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 KKR Co may increase or decrease. In other words, similar to KKR Co's beta indicator, it measures the risk of KKR Co and helps estimate the fluctuations that may happen in a short period of time. So if prices of KKR Co 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 KKR Co's Liquidity

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

KKR Co Volatility Drivers

KKR Co unsystematic risk is unique to KKR Co LP 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 KKR Co you can also buy Coca-Cola. You can also mitigate this risk by investing in the asset management 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 KKR Co 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 KKR Co income statement and balance sheet. Here are more details about KKR Co volatility.
Click cells to compare fundamentals

A Deeper Perspective On KKR Co

The big decline in price over the last few months for KKR Co LPmay raise some interest from retail investors. The stock closed today at a share price of 54.29 on 6,884,686 in trading volume. The company directors and management failed to add value to investors and position the firm supply of money to exploit market volatility in April. However, diversifying your holdings with KKR Co or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 3.33. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from KKR Co LP partners.

Can KKR Co build up on the latest spike?

KKR Co latest maximum drawdown advances over 13.5. KKR Co LP exhibits very low volatility with skewness of -0.15 and kurtosis of -0.65. However, we advise investors to further study KKR Co LP 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 KKR Co'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 KKR Co'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.

KKR Co Implied Volatility

KKR Co's implied volatility exposes the market's sentiment of KKR Co LP stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if KKR Co'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 KKR Co stock will not fluctuate a lot when KKR Co's options are near their expiration.

Our Bottom Line On KKR Co LP

While many of the other players in the asset management industry are either recovering or due for a correction, KKR Co may not be as strong as the others in terms of longer-term growth potentials. To sum up, as of the 3rd of May 2022, we believe that at this point, KKR Co is undervalued with close to average chance of distress within the next 2 years. Our up-to-date buy-or-sell advice on the enterprise is Hold.

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 Vlad Skutelnik do not own shares of KKR Co LP. Please refer to our Terms of Use for any information regarding our disclosure principles.

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