Penske Automotive Group Stock Market Value
| PAG Stock | USD 149.02 1.08 0.73% |
| Symbol | Penske |
Penske Automotive Price To Book Ratio
Is Penske Automotive'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 Penske Automotive. If investors know Penske 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 Penske Automotive 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 (0.33) | Dividend Share 3.04 | Earnings Share 15.5 | Revenue Per Share 434.457 | Quarterly Revenue Growth 0.037 |
The market value of Penske Automotive is measured differently than its book value, which is the value of Penske that is recorded on the company's balance sheet. Investors also form their own opinion of Penske Automotive's value that differs from its market value or its book value, called intrinsic value, which is Penske Automotive'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 Penske Automotive's market value can be influenced by many factors that don't directly affect Penske Automotive'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 Penske Automotive's value and its price as these two are different measures arrived at by different means. Investors typically determine if Penske Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Penske Automotive'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.
Penske Automotive 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Penske Automotive's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Penske Automotive.
| 02/23/2024 |
| 04/23/2024 |
If you would invest 0.00 in Penske Automotive on February 23, 2024 and sell it all today you would earn a total of 0.00 from holding Penske Automotive Group or generate 0.0% return on investment in Penske Automotive over 60 days. Penske Automotive is related to or competes with Group 1, Lithia Motors, AutoNation, Asbury Automotive, and Sonic Automotive. Penske Automotive Group, Inc., a diversified transportation services company, operates automotive and commercial truck d... More
Penske Automotive Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Penske Automotive's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Penske Automotive Group upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.06) | |||
| Maximum Drawdown | 6.65 | |||
| Value At Risk | (2.77) | |||
| Potential Upside | 2.83 |
Penske Automotive Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Penske Automotive's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Penske Automotive's standard deviation. In reality, there are many statistical measures that can use Penske Automotive historical prices to predict the future Penske Automotive's volatility.| Risk Adjusted Performance | 0.0043 | |||
| Jensen Alpha | (0.15) | |||
| Total Risk Alpha | (0.20) | |||
| Treynor Ratio | (0.01) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Penske Automotive's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Penske Automotive Backtested Returns
We consider Penske Automotive very steady. Penske Automotive maintains Sharpe Ratio (i.e., Efficiency) of 6.0E-4, which implies the firm had a 6.0E-4% return per unit of risk over the last 3 months. We have found twenty-three technical indicators for Penske Automotive, which you can use to evaluate the volatility of the company. Please check Penske Automotive's Variance of 2.19, coefficient of variation of (40,622), and Risk Adjusted Performance of 0.0043 to confirm if the risk estimate we provide is consistent with the expected return of 0.001%. The company holds a Beta of 1.69, which implies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Penske Automotive will likely underperform. Penske Automotive right now holds a risk of 1.5%. Please check Penske Automotive kurtosis, and the relationship between the value at risk and rate of daily change , to decide if Penske Automotive will be following its historical price patterns.
Auto-correlation | -0.51 |
Good reverse predictability
Penske Automotive Group has good reverse predictability. Overlapping area represents the amount of predictability between Penske Automotive time series from 23rd of February 2024 to 24th of March 2024 and 24th of March 2024 to 23rd of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Penske Automotive price movement. The serial correlation of -0.51 indicates that about 51.0% of current Penske Automotive price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.51 | |
| Spearman Rank Test | -0.47 | |
| Residual Average | 0.0 | |
| Price Variance | 20.8 |
Penske Automotive lagged returns against current returns
Autocorrelation, which is Penske Automotive stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Penske Automotive's stock expected returns. We can calculate the autocorrelation of Penske Automotive returns to help us make a trade decision. For example, suppose you find that Penske Automotive has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Penske Automotive regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Penske Automotive stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Penske Automotive stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Penske Automotive stock over time.
Current vs Lagged Prices |
| Timeline |
Penske Automotive Lagged Returns
When evaluating Penske Automotive's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Penske Automotive stock have on its future price. Penske Automotive autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Penske Automotive autocorrelation shows the relationship between Penske Automotive stock current value and its past values and can show if there is a momentum factor associated with investing in Penske Automotive Group.
Regressed Prices |
| Timeline |
Penske Automotive Investors Sentiment
The influence of Penske Automotive's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Penske. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Penske Automotive's public news can be used to forecast risks associated with an investment in Penske. The trend in average sentiment can be used to explain how an investor holding Penske can time the market purely based on public headlines and social activities around Penske Automotive Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Penske Automotive's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Penske Automotive's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Penske Automotive's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Penske Automotive.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Penske Automotive in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Penske Automotive's short interest history, or implied volatility extrapolated from Penske Automotive options trading.
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Check out Penske Automotive Correlation, Penske Automotive Volatility and Penske Automotive Alpha and Beta module to complement your research on Penske Automotive. Note that the Penske Automotive information on this page should be used as a complementary analysis to other Penske Automotive's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Complementary Tools for Penske Stock analysis
When running Penske Automotive's price analysis, check to measure Penske Automotive'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 Penske Automotive is operating at the current time. Most of Penske Automotive's value examination focuses on studying past and present price action to predict the probability of Penske Automotive's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Penske Automotive's price. Additionally, you may evaluate how the addition of Penske Automotive to your portfolios can decrease your overall portfolio volatility.
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Penske Automotive technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.