Rivian Automotive Stock Beta
| RIVN Stock | USD 12.23 0.01 0.08% |
Rivian Automotive fundamentals help investors to digest information that contributes to Rivian Automotive's financial success or failures. It also enables traders to predict the movement of Rivian Stock. The fundamental analysis module provides a way to measure Rivian Automotive'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 Rivian Automotive stock.
Rivian | Beta |
Rivian Automotive Company Beta Analysis
Rivian Automotive'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 Rivian Automotive Beta | 2.05 |
Most of Rivian Automotive'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, Rivian Automotive is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Rivian Beta Driver Correlations
Understanding the fundamental principles of building solid financial models for Rivian Automotive is extremely important. It helps to project a fair market value of Rivian Stock properly, considering its historical fundamentals such as Beta. Since Rivian Automotive's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Rivian Automotive's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Rivian Automotive's interrelated accounts and indicators.
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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, Rivian Automotive has a Beta of 2.045. This is 143.45% higher than that of the Automobiles sector and 143.45% higher than that of the Consumer Discretionary industry. The beta for all United States stocks is notably lower than that of the firm.
Rivian Beta Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Rivian Automotive'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 Rivian Automotive could also be used in its relative valuation, which is a method of valuing Rivian Automotive by comparing valuation metrics of similar companies.Rivian Automotive is currently under evaluation in beta category among its peers.
Rivian Automotive 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, Rivian Automotive's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Rivian Automotive's managers, analysts, and investors.Environmental | Governance | Social |
Rivian Automotive Institutional Holders
Institutional Holdings refers to the ownership stake in Rivian Automotive that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Rivian Automotive's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Rivian Automotive's value.| Shares | Renaissance Technologies Corp | 2024-09-30 | 6.3 M | Legal & General Group Plc | 2024-06-30 | 4.9 M | Millennium Management Llc | 2024-06-30 | 4.9 M | Charles Schwab Investment Management Inc | 2024-09-30 | 4.6 M | Northern Trust Corp | 2024-09-30 | 4.3 M | Gilder Gagnon Howe & Co Llc | 2024-09-30 | 3.6 M | Bank Of America Corp | 2024-06-30 | 3.5 M | Abrdn Plc | 2024-09-30 | 3.4 M | Goldman Sachs Group Inc | 2024-06-30 | 3.3 M | Amazon.com Inc | 2024-09-30 | 158.4 M | Vanguard Group Inc | 2024-09-30 | 78.4 M |
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Rivian Automotive will likely underperform.
Rivian Fundamentals
| Return On Equity | -0.67 | ||||
| Return On Asset | -0.23 | ||||
| Profit Margin | (1.21) % | ||||
| Operating Margin | (1.34) % | ||||
| Current Valuation | 11.99 B | ||||
| Shares Outstanding | 1.01 B | ||||
| Shares Owned By Insiders | 26.61 % | ||||
| Shares Owned By Institutions | 45.73 % | ||||
| Number Of Shares Shorted | 150 M | ||||
| Price To Book | 2.11 X | ||||
| Price To Sales | 2.74 X | ||||
| Revenue | 4.43 B | ||||
| Gross Profit | (3.12 B) | ||||
| EBITDA | (4.27 B) | ||||
| Net Income | (5.43 B) | ||||
| Cash And Equivalents | 13.27 B | ||||
| Cash Per Share | 14.41 X | ||||
| Total Debt | 4.92 B | ||||
| Debt To Equity | 0.11 % | ||||
| Current Ratio | 6.84 X | ||||
| Book Value Per Share | 5.78 X | ||||
| Cash Flow From Operations | (4.87 B) | ||||
| Short Ratio | 3.96 X | ||||
| Earnings Per Share | (5.60) X | ||||
| Price To Earnings To Growth | 0.13 X | ||||
| Target Price | 14.96 | ||||
| Number Of Employees | 16.79 K | ||||
| Beta | 2.05 | ||||
| Market Capitalization | 12.47 B | ||||
| Total Asset | 16.78 B | ||||
| Retained Earnings | (18.56 B) | ||||
| Working Capital | 9.83 B | ||||
| Net Asset | 16.78 B |
About Rivian Automotive Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Rivian Automotive's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Rivian Automotive using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Rivian Automotive 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.
Pair Trading with Rivian Automotive
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 Rivian Automotive 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 Rivian Automotive will appreciate offsetting losses from the drop in the long position's value.Moving against Rivian Stock
| 0.77 | XPEV | Xpeng Inc | PairCorr |
| 0.76 | LI | Li Auto | PairCorr |
| 0.62 | MOD | Modine Manufacturing | PairCorr |
| 0.57 | BWA | BorgWarner | PairCorr |
| 0.54 | THO | Thor Industries Earnings Call This Week | PairCorr |
The ability to find closely correlated positions to Rivian Automotive could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Rivian Automotive 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 Rivian Automotive - 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 Rivian Automotive to buy it.
The correlation of Rivian Automotive 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 Rivian Automotive moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Rivian Automotive 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 Rivian Automotive 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 Rivian Automotive Piotroski F Score and Rivian Automotive Altman Z Score analysis. To learn how to invest in Rivian Stock, please use our How to Invest in Rivian Automotive guide.You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Is Automobile Manufacturers space 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 Rivian Automotive. If investors know Rivian 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 Rivian Automotive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (5.60) | Revenue Per Share 4.602 | Quarterly Revenue Growth (0.35) | Return On Assets (0.23) | Return On Equity (0.67) |
The market value of Rivian Automotive is measured differently than its book value, which is the value of Rivian that is recorded on the company's balance sheet. Investors also form their own opinion of Rivian Automotive's value that differs from its market value or its book value, called intrinsic value, which is Rivian 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 Rivian Automotive's market value can be influenced by many factors that don't directly affect Rivian 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 Rivian Automotive's value and its price as these two are different measures arrived at by different means. Investors typically determine if Rivian Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rivian 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.