Ford Beta vs. Price to Book

F -  USA Stock  

USD 12.01  0.45  3.89%

For Ford profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ford to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ford Motor utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ford's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ford Motor over time as well as its relative position and ranking within its peers. Please check Investing Opportunities.
  
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The current year Return on Sales is expected to grow to 0.15, whereas Price to Sales Ratio is forecasted to decline to 0.53. Ford Net Income is projected to decrease significantly based on the last few years of reporting. The past year's Net Income was at 17.94 Billion. The current year Net Income Common Stock is expected to grow to about 19.4 B, whereas Net Income to Non Controlling Interests is forecasted to decline to (27.7 M).

Ford Revenues

155.86 Billion

Share
Is Ford's industry 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 Ford. If investors know Ford 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 Ford 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 YOY
-0.25
Market Capitalization
45.6 B
Quarterly Revenue Growth YOY
-0.048
Return On Assets
0.0227
Return On Equity
0.29
The market value of Ford Motor is measured differently than its book value, which is the value of Ford that is recorded on the company's balance sheet. Investors also form their own opinion of Ford's value that differs from its market value or its book value, called intrinsic value, which is Ford'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 Ford's market value can be influenced by many factors that don't directly affect Ford'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 Ford's value and its price as these two are different measures arrived at by different means. Investors typically determine Ford value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ford'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.

Ford Motor Price to Book vs. Beta Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Ford's current stock value. Our valuation model uses many indicators to compare Ford value to that of its competitors to determine the firm's financial worth.
Ford Motor is one of the top stocks in beta category among related companies. It is one of the top stocks in price to book category among related companies fabricating about  1.15  of Price to Book per Beta. As of June 25, 2022, Price to Book Value is expected to decline to 1.68. Comparative valuation analysis is a catch-all model that can be used if you cannot value Ford by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ford's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Ford's earnings, one of the primary drivers of an investment's value.

Ford Price to Book vs. Beta

Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it will be expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Ford 
Beta 
 = 
Covariance 
Variance 
1.1
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
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.
Ford 
P/B 
 = 
MV Per Share 
BV Per Share 
1.26 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.

Ford Price to Book Comparison

Ford is currently under evaluation in price to book category among related companies.

Beta Analysis

Let's try to break down what Ford's beta means in this case. Ford returns are very sensitive to returns on the market. As the market goes up or down, Ford is expected to follow.

Ford Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Ford, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ford will eventually generate negative long term returns. The profitability progress is the general direction of Ford's change in net profit over the period of time. It can combine multiple indicators of Ford, 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.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-8.3 B-9 B
Consolidated Income17.9 B19.3 B
Net Income17.9 B19.4 B
Net Income Common Stock17.9 B19.4 B
Net Income to Non Controlling Interests-27 M-27.7 M
Operating Income4.5 B4.2 B
Income Tax Expense-130 M-140.3 M
Net Income Per Employee98 K105.8 K
Ford Motor Company designs, manufactures, markets, and services a range of Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles worldwide. Ford Motor Company was incorporated in 1903 and is based in Dearborn, Michigan. Ford operates under Auto Manufacturers classification in the United States and is traded on New York Stock Exchange. It employs 183000 people.

Ford Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Ford. 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 Ford 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 Ford's important profitability drivers and their relationship over time.

Use Ford 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 Ford 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 Ford will appreciate offsetting losses from the drop in the long position's value.

Ford Pair Trading

Ford Motor Pair Trading Analysis

The ability to find closely correlated positions to Ford could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ford 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 Ford - 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 Ford Motor to buy it.
The correlation of Ford is a statistical measure of how it moves in relation to other equities. 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 Ford moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ford Motor 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 Ford 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Ford position

In addition to having Ford 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.

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Currency
Currency Theme
Funds or Etfs investing in a single currency or combination of currencies from different countries in order to replicate respective foreign exchange markets. The Currency theme has 40 constituents.
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Please check Investing Opportunities. Note that the Ford Motor information on this page should be used as a complementary analysis to other Ford's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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When running Ford Motor price analysis, check to measure Ford's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ford is operating at the current time. Most of Ford's value examination focuses on studying past and present price action to predict the probability of Ford's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Ford's price. Additionally, you may evaluate how the addition of Ford to your portfolios can decrease your overall portfolio volatility.
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To fully project Ford's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ford Motor at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Ford's income statement, its balance sheet, and the statement of cash flows.
Potential Ford investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Ford investors may work on each financial statement separately, they are all related. The changes in Ford's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ford's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.