Intercept Pharmaceuticals Price To Book vs. Current Valuation
Based on Intercept Pharmaceuticals' profitability indicators, Intercept Pharmaceuticals may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in April. Profitability indicators assess Intercept Pharmaceuticals' ability to earn profits and add value for shareholders.
Check out Risk vs Return Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey.
Please note, there is a significant difference between Intercept Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Intercept Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Intercept Pharmaceuticals' 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.
For Intercept Pharmaceuticals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Intercept Pharmaceuticals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Intercept Pharmaceuticals utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Intercept Pharmaceuticals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Intercept Pharmaceuticals over time as well as its relative position and ranking within its peers.
Intercept |
Intercept Pharmaceuticals Current Valuation vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Intercept Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Intercept Pharmaceuticals value to that of its competitors to determine the firm's financial worth. Intercept Pharmaceuticals is rated fourth overall in price to book category among its peers. It is rated below average in current valuation category among its peers reporting about 15,745,766 of Current Valuation per Price To Book. Comparative valuation analysis is a catch-all technique that is used if you cannot value Intercept Pharmaceuticals by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Intercept Current Valuation vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Intercept Pharmaceuticals |
| = | 44.19 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Intercept Pharmaceuticals |
| = | 695.84 M |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Intercept Current Valuation vs Competition
Intercept Pharmaceuticals is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Health Care industry is currently estimated at about 45.17 Billion. Intercept Pharmaceuticals claims roughly 695.84 Million in current valuation contributing just under 2% to equities under Health Care industry.
Intercept Pharmaceuticals Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Intercept Pharmaceuticals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Intercept Pharmaceuticals will eventually generate negative long term returns. The profitability progress is the general direction of Intercept Pharmaceuticals' change in net profit over the period of time. It can combine multiple indicators of Intercept Pharmaceuticals, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Intercept Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics to treat progressive non-viral liver diseases in the United States, Europe, and Canada. The company was incorporated in 2002 and is headquartered in New York, New York. Intercept Pharmaceuticals operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 437 people.
Intercept Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Intercept Pharmaceuticals. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Intercept Pharmaceuticals position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Intercept Pharmaceuticals' important profitability drivers and their relationship over time.
Use Intercept Pharmaceuticals in pair-trading
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 Intercept Pharmaceuticals 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 Intercept Pharmaceuticals will appreciate offsetting losses from the drop in the long position's value.Intercept Pharmaceuticals Pair Trading
Intercept Pharmaceuticals Pair Trading Analysis
The ability to find closely correlated positions to Merck could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Merck 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 Merck - 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 Merck Company to buy it.
The correlation of Merck 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 Merck moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Merck Company 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 Merck 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.Use Investing Themes to Complement your Intercept Pharmaceuticals position
In addition to having Intercept Pharmaceuticals in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Beer and Liquor Thematic Idea Now
Beer and Liquor
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Beer and Liquor theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Beer and Liquor Theme or any other thematic opportunities.
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Check out Risk vs Return Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Consideration for investing in Intercept Stock
If you are still planning to invest in Intercept Pharmaceuticals check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Intercept Pharmaceuticals' history and understand the potential risks before investing.
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