Gildan Historical Valuation
| GIL Stock | CAD 69.60 0.20 0.29% |
Some fundamental drivers such as market cap or Gildan Activewear enterprice value can be analyzed from historical perspective to project value of the company into the future. Some investors analyze Gildan Activewear valuation indicators such as Enterprise Value of 7.4 B to time the market or to short-sell their positions based on the trend in valuation ratios. It is a perfect tool to project the direction of Gildan Activewear's future value.
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About Gildan Valuation Data Analysis
Valuation is the financial process of determining what Gildan Activewear is worth. Gildan Activewear valuation ratios put that insight into the context of a company's share price, where they serve as useful tools for evaluating and utilizing investment potential. Gildan Activewear valuation ratios help investors to determine whether Gildan 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 Gildan with respect to the benefits of owning Gildan Activewear security.
Gildan Activewear Valuation Data Chart
Enterprise Value
Enterprise Value (or EV) is usually referred to as Gildan Activewear theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Gildan Activewear debt, but would also pocket its cash. Enterprise Value is more accurate representation of Gildan Activewear value than its market capitalization because it takes into account all of Gildan Activewear existing debt. A measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization that includes the market capitalization, plus total debt, minority interest and preferred shares, minus total cash and cash equivalents.Pair Trading with Gildan Activewear
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 Gildan Activewear 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 Gildan Activewear will appreciate offsetting losses from the drop in the long position's value.Moving against Gildan Stock
The ability to find closely correlated positions to Gildan Activewear could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Gildan Activewear 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 Gildan Activewear - 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 Gildan Activewear to buy it.
The correlation of Gildan Activewear 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 Gildan Activewear moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Gildan Activewear 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 Gildan Activewear 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 Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Gildan Activewear. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. To learn how to invest in Gildan Stock, please use our How to Invest in Gildan Activewear guide.You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.