Stepan Company Stock Market Value
| SCL Stock | USD 76.09 0.07 0.09% |
| Symbol | Stepan |
Stepan Company Price To Book Ratio
Is Specialty Chemicals 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 Stepan. If investors know Stepan 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 Stepan 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 0.873 | Dividend Share 1.5 | Earnings Share 2 | Revenue Per Share 95.823 | Quarterly Revenue Growth (0.03) |
The market value of Stepan Company is measured differently than its book value, which is the value of Stepan that is recorded on the company's balance sheet. Investors also form their own opinion of Stepan's value that differs from its market value or its book value, called intrinsic value, which is Stepan'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 Stepan's market value can be influenced by many factors that don't directly affect Stepan'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 Stepan's value and its price as these two are different measures arrived at by different means. Investors typically determine if Stepan is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Stepan'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.
Stepan '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 Stepan'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 Stepan.
| 12/09/2022 |
| 11/28/2024 |
If you would invest 0.00 in Stepan on December 9, 2022 and sell it all today you would earn a total of 0.00 from holding Stepan Company or generate 0.0% return on investment in Stepan over 720 days. Stepan is related to or competes with Innospec, Minerals Technologies, Oil Dri, Quaker Chemical, Sensient Technologies, H B, and Avient Corp. Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufac... More
Stepan 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 Stepan'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 Stepan Company upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.08) | |||
| Maximum Drawdown | 12.16 | |||
| Value At Risk | (2.72) | |||
| Potential Upside | 2.04 |
Stepan Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Stepan's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Stepan's standard deviation. In reality, there are many statistical measures that can use Stepan historical prices to predict the future Stepan's volatility.| Risk Adjusted Performance | 5.0E-4 | |||
| Jensen Alpha | (0.23) | |||
| Total Risk Alpha | (0.30) | |||
| 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 Stepan'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.
Stepan Company Backtested Returns
Stepan Company owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0088, which indicates the firm had a -0.0088% return per unit of risk over the last 3 months. Stepan Company exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Stepan's Coefficient Of Variation of (14,633), risk adjusted performance of 5.0E-4, and Variance of 3.17 to confirm the risk estimate we provide. The entity has a beta of 1.69, which indicates 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, Stepan will likely underperform. At this point, Stepan Company has a negative expected return of -0.016%. Please make sure to validate Stepan's maximum drawdown, as well as the relationship between the accumulation distribution and price action indicator , to decide if Stepan Company performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.83 |
Very good predictability
Stepan Company has very good predictability. Overlapping area represents the amount of predictability between Stepan time series from 9th of December 2022 to 4th of December 2023 and 4th of December 2023 to 28th of November 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 Stepan Company price movement. The serial correlation of 0.83 indicates that around 83.0% of current Stepan price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.83 | |
| Spearman Rank Test | 0.75 | |
| Residual Average | 0.0 | |
| Price Variance | 39.29 |
Stepan Company lagged returns against current returns
Autocorrelation, which is Stepan 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 Stepan's stock expected returns. We can calculate the autocorrelation of Stepan returns to help us make a trade decision. For example, suppose you find that Stepan 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 |
Stepan 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 Stepan stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Stepan stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Stepan stock over time.
Current vs Lagged Prices |
| Timeline |
Stepan Lagged Returns
When evaluating Stepan's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Stepan stock have on its future price. Stepan 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, Stepan autocorrelation shows the relationship between Stepan stock current value and its past values and can show if there is a momentum factor associated with investing in Stepan Company.
Regressed Prices |
| Timeline |
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectCheck out Stepan Correlation, Stepan Volatility and Stepan Alpha and Beta module to complement your research on Stepan. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Stepan 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.