Carvana Co Stock Market Value
| CVNA Stock | USD 75.35 0.27 0.36% |
| Symbol | Carvana |
Carvana Price To Book Ratio
Is Carvana'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 Carvana. If investors know Carvana 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 Carvana listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (4.18) | Revenue Per Share 98.525 | Quarterly Revenue Growth (0.15) | Return On Assets (0.01) | Return On Equity (12.69) |
The market value of Carvana is measured differently than its book value, which is the value of Carvana that is recorded on the company's balance sheet. Investors also form their own opinion of Carvana's value that differs from its market value or its book value, called intrinsic value, which is Carvana'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 Carvana's market value can be influenced by many factors that don't directly affect Carvana'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 Carvana's value and its price as these two are different measures arrived at by different means. Investors typically determine if Carvana is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Carvana'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.
Carvana '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 Carvana'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 Carvana.
| 03/26/2024 |
| 04/25/2024 |
If you would invest 0.00 in Carvana on March 26, 2024 and sell it all today you would earn a total of 0.00 from holding Carvana Co or generate 0.0% return on investment in Carvana over 30 days. Carvana is related to or competes with Cazoo, CarMax, U Power, SunCar Technology, Jiuzi Holdings, Vroom, and AutoNation. Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the Uni... More
Carvana 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 Carvana'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 Carvana Co upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 4.39 | |||
| Information Ratio | 0.1404 | |||
| Maximum Drawdown | 40.53 | |||
| Value At Risk | (6.88) | |||
| Potential Upside | 9.56 |
Carvana Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Carvana's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Carvana's standard deviation. In reality, there are many statistical measures that can use Carvana historical prices to predict the future Carvana's volatility.| Risk Adjusted Performance | 0.1061 | |||
| Jensen Alpha | 0.6195 | |||
| Total Risk Alpha | 0.1077 | |||
| Sortino Ratio | 0.1987 | |||
| Treynor Ratio | 0.2413 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Carvana'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.
Carvana Backtested Returns
Carvana is not too volatile given 3 months investment horizon. Carvana secures Sharpe Ratio (or Efficiency) of 0.18, which signifies that the company had a 0.18% return per unit of risk over the last 3 months. We were able to interpolate thirty different technical indicators, which can help you to evaluate if expected returns of 1.13% are justified by taking the suggested risk. Use Carvana Mean Deviation of 4.19, downside deviation of 4.39, and Risk Adjusted Performance of 0.1061 to evaluate company specific risk that cannot be diversified away. Carvana holds a performance score of 14 on a scale of zero to a hundred. The firm shows a Beta (market volatility) of 3.97, which signifies 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, Carvana will likely underperform. Use Carvana sortino ratio, semi variance, rate of daily change, as well as the relationship between the value at risk and kurtosis , to analyze future returns on Carvana.
Auto-correlation | 0.68 |
Good predictability
Carvana Co has good predictability. Overlapping area represents the amount of predictability between Carvana time series from 26th of March 2024 to 10th of April 2024 and 10th of April 2024 to 25th 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 Carvana price movement. The serial correlation of 0.68 indicates that around 68.0% of current Carvana price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.68 | |
| Spearman Rank Test | 0.23 | |
| Residual Average | 0.0 | |
| Price Variance | 14.73 |
Carvana lagged returns against current returns
Autocorrelation, which is Carvana 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 Carvana's stock expected returns. We can calculate the autocorrelation of Carvana returns to help us make a trade decision. For example, suppose you find that Carvana 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 |
Carvana 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 Carvana stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Carvana stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Carvana stock over time.
Current vs Lagged Prices |
| Timeline |
Carvana Lagged Returns
When evaluating Carvana's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Carvana stock have on its future price. Carvana 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, Carvana autocorrelation shows the relationship between Carvana stock current value and its past values and can show if there is a momentum factor associated with investing in Carvana Co.
Regressed Prices |
| Timeline |
Pair Trading with Carvana
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 Carvana 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 Carvana will appreciate offsetting losses from the drop in the long position's value.Moving together with Carvana Stock
| 0.83 | DIBS | 1StdibsCom Financial Report 8th of May 2024 | PairCorr |
| 0.71 | JD | JD Inc Adr Aggressive Push | PairCorr |
Moving against Carvana Stock
| 0.9 | AAN | Aarons | PairCorr |
| 0.72 | BGI | Birks Group | PairCorr |
| 0.7 | EXPE | Expedia Group Earnings Call This Week | PairCorr |
| 0.59 | ETSY | Etsy Inc Earnings Call This Week | PairCorr |
| 0.57 | WEYS | Weyco Group | PairCorr |
The ability to find closely correlated positions to Carvana could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Carvana 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 Carvana - 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 Carvana Co to buy it.
The correlation of Carvana 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 Carvana moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Carvana 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 Carvana 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.Check out Carvana Correlation, Carvana Volatility and Carvana Alpha and Beta module to complement your research on Carvana. 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 Carvana Stock analysis
When running Carvana's price analysis, check to measure Carvana'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 Carvana is operating at the current time. Most of Carvana's value examination focuses on studying past and present price action to predict the probability of Carvana's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Carvana's price. Additionally, you may evaluate how the addition of Carvana to your portfolios can decrease your overall portfolio volatility.
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Carvana 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.