Descartes Historical Valuation
| DSG Stock | CAD 172.30 0.75 0.43% |
Some fundamental drivers such as market cap or Descartes Systems enterprice value can be analyzed from historical perspective to project value of the company into the future. Some investors analyze Descartes Systems valuation indicators such as Enterprise Value of 6.9 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 Descartes Systems's future value.
Descartes |
About Descartes Valuation Data Analysis
Valuation is the financial process of determining what Descartes Systems is worth. Descartes Systems 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. Descartes Systems valuation ratios help investors to determine whether Descartes 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 Descartes with respect to the benefits of owning Descartes Systems security.
Descartes Systems Valuation Data Chart
Enterprise Value
Enterprise Value (or EV) is usually referred to as Descartes Systems theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Descartes Systems debt, but would also pocket its cash. Enterprise Value is more accurate representation of Descartes Systems value than its market capitalization because it takes into account all of Descartes Systems Group 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 Descartes Systems
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 Descartes Systems 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 Descartes Systems will appreciate offsetting losses from the drop in the long position's value.Moving together with Descartes Stock
Moving against Descartes Stock
The ability to find closely correlated positions to Descartes Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Descartes Systems 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 Descartes Systems - 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 Descartes Systems Group to buy it.
The correlation of Descartes Systems 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 Descartes Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Descartes Systems 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 Descartes Systems 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 Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Descartes Systems Group. 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. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .