Fortis Historical Valuation
| FTS Stock | CAD 63.44 0.92 1.43% |
Some fundamental drivers such as market cap or Fortis enterprice value can be analyzed from historical perspective to project value of the company into the future. Some investors analyze Fortis Inc valuation indicators such as Enterprise Value of 2.6 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 Fortis's future value.
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About Fortis Valuation Data Analysis
Valuation is the financial process of determining what Fortis is worth. Fortis 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. Fortis valuation ratios help investors to determine whether Fortis 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 Fortis with respect to the benefits of owning Fortis security.
Fortis Valuation Data Chart
Enterprise Value
Enterprise Value (or EV) is usually referred to as Fortis theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Fortis Inc debt, but would also pocket its cash. Enterprise Value is more accurate representation of Fortis value than its market capitalization because it takes into account all of Fortis Inc 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 Fortis
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 Fortis 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 Fortis will appreciate offsetting losses from the drop in the long position's value.Moving against Fortis Stock
The ability to find closely correlated positions to Fortis could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fortis 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 Fortis - 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 Fortis Inc to buy it.
The correlation of Fortis 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 Fortis moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fortis Inc 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 Fortis 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 Fortis Inc. 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.