Direct Line Insurance Stock Beta
| DLG Stock | 282.60 1.20 0.42% |
Direct Line Insurance fundamentals help investors to digest information that contributes to Direct Line's financial success or failures. It also enables traders to predict the movement of Direct Stock. The fundamental analysis module provides a way to measure Direct Line's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Direct Line stock.
Direct | Beta |
Direct Line Insurance Company Beta Analysis
Direct Line's Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Current Direct Line Beta | 0.42 |
Most of Direct Line's fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Direct Line Insurance is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
| Competition |
In accordance with the recently published financial statements, Direct Line Insurance has a Beta of 0.416. This is 49.27% lower than that of the Insurance sector and significantly higher than that of the Financials industry. The beta for all United Kingdom stocks is notably lower than that of the firm.
Direct Beta Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Direct Line's direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Direct Line could also be used in its relative valuation, which is a method of valuing Direct Line by comparing valuation metrics of similar companies.Direct Line is currently under evaluation in beta category among its peers.
Direct Line ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Direct Line's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Direct Line's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
As returns on the market increase, Direct Line's returns are expected to increase less than the market. However, during the bear market, the loss of holding Direct Line is expected to be smaller as well.
Direct Fundamentals
| Return On Equity | 0.0665 | ||||
| Return On Asset | 0.0272 | ||||
| Profit Margin | 0.03 % | ||||
| Operating Margin | 0.07 % | ||||
| Current Valuation | 2.92 B | ||||
| Shares Outstanding | 1.3 B | ||||
| Shares Owned By Insiders | 0.96 % | ||||
| Shares Owned By Institutions | 99.04 % | ||||
| Price To Book | 1.46 X | ||||
| Price To Sales | 0.77 X | ||||
| Revenue | 3.93 B | ||||
| Gross Profit | 350.9 M | ||||
| EBITDA | 415.4 M | ||||
| Net Income | 206.3 M | ||||
| Total Debt | 447.3 M | ||||
| Book Value Per Share | 1.91 X | ||||
| Cash Flow From Operations | 404.9 M | ||||
| Earnings Per Share | 0.11 X | ||||
| Price To Earnings To Growth | 2.14 X | ||||
| Target Price | 267.5 | ||||
| Number Of Employees | 9.05 K | ||||
| Beta | 0.42 | ||||
| Market Capitalization | 3.69 B | ||||
| Total Asset | 8.42 B | ||||
| Retained Earnings | 484.7 M | ||||
| Annual Yield | 0.03 % | ||||
| Net Asset | 8.42 B | ||||
| Last Dividend Paid | 0.07 |
About Direct Line Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Direct Line Insurance's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Direct Line using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Direct Line Insurance based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Other Information on Investing in Direct Stock
Direct Line financial ratios help investors to determine whether Direct Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Direct with respect to the benefits of owning Direct Line security.