The Price to book ratio is the current share price of a company divided by the book value per share.  The Price to Book ratio for NVR, Inc. NYSE:NVR is 5.686149.  A lower price to book ratio indicates that the stock might be undervalued.  Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value.  The Price to Cash Flow for NVR, Inc. (NYSE:NVR) is 16.318761.  This ratio is calculated by dividing the market value of a company by cash from operating activities.  Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability.  The price to earnings ratio for NVR, Inc. (NYSE:NVR) is 13.935471. This ratio is found by taking the current share price and dividing by earnings per share.

As we move closer to the close of the year, investors will be closely watching the next round of company earnings results. Investors may choose to closely follow Wall Street analyst projections around earnings periods. Analysts will typically make adjustments to estimates as the earnings date approaches. Many investors will look to see which way the estimate revisions are trending heading into the earnings report. Once the release is published, analysts have the ability to make further updates based on actual information that the company provides.

Watching some historical volatility numbers on shares of NVR, Inc. (NYSE:NVR), we can see that the 12 month volatility is presently 33.012400. The 6 month volatility is 29.889800, and the 3 month is spotted at 28.835200. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period. 

We can now take a quick look at some historical stock price index data. NVR, Inc. (NYSE:NVR) presently has a 10 month price index of 0.74036. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 0.88631, the 24 month is 1.53297, and the 36 month is 1.61818. Narrowing in a bit closer, the 5 month price index is 0.79805, the 3 month is 0.85694, and the 1 month is currently 0.93178.

Valuation Ratios

Looking at some ROIC (Return on Invested Capital) numbers, NVR, Inc. (NYSE:NVR)’s ROIC is 0.503900. The ROIC 5 year average is 0.356244 and the ROIC Quality ratio is 2.748682. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.  In terms of EBITDA Yield, NVR, Inc. (NYSE:NVR) currently has a value of 0.105521. This value is derived by dividing EBITDA by Enterprise Value.

The Price to Book ratio (Current share price / Book value per share) is a good valuation measure you can use to find undervalued investment ideas.  A low Price to Book could indicate that the shares are undervalued in their industry.  Generally speaking a P/B ratio under 1 is considered low and is best used in relation to asset-heavy firms.  At the time of writing NVR, Inc. (NYSE:NVR) has a price to book ratio of 5.686149.

Some investors may be lamenting the fact that they have not taken full advantage of the long bull run. There are plenty of pundits that are calling for a sharp stock market decline, but there are also many who believe that the ceiling has been raised and there is much more room for stocks to go higher. Getting into the market at these levels may be holding some investors back from jumping into the fray, and nobody can be sure which way the momentum will swing as we near the end of the year. The next round of company earnings reports should provide some good information about future prospects. Investors will be closely watching to see which sectors are running at full speed and which ones are lagging. 

The Leverage Ratio of NVR, Inc. (NYSE:NVR) is 0.201560. Leverage ratio is the total debt of a company divided by total assets of the current and past year divided by two. Companies take on debt to finance their day to day operations. The leverage ratio can measure how much of a company’s capital comes from debt. With this ratio, investors can better estimate how well a company will be able to pay their long and short term financial obligations.

There are many different tools to determine whether a company is profitable or not.  One of the most popular ratios is the “Return on Assets” (aka ROA).  This score indicates how profitable a company is relative to its total assets.  The Return on Assets for NVR, Inc. (NYSE:NVR) is 0.224786.  This number is calculated by dividing net income after tax by the company’s total assets.  A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.

The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of NVR, Inc. (NYSE:NVR) is 36.  A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company.  The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of NVR, Inc. (NYSE:NVR) is 29.

Investors have plenty to keep up with when following day to day business news. Sifting through the headlines can be cumbersome, and figuring out which data to pay attention to can be very time consuming. News events can play a big role in the investing world. Big news has the ability to push a stock up or down. Sometimes the move may be justified, and other times it may not be. Disciplined investors are usually skilled at determining which information to focus on. Overreactions can play a large role in determining the long-term health of a portfolio. Investors often have to understand that a great stock can see periods of decline just as a weak stock may experience periods of strength. Putting in the research hours can help the investor prepare for opportunities when they spot unusual action in the stock market.

At the time of writing, NVR, Inc. (NYSE:NVR) has a Piotroski F-Score of 8. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

The Price to book ratio is the current share price of a company divided by the book value per share.  The Price to Book ratio for NVR, Inc. NYSE:NVR is 5.686149.  A lower price to book ratio indicates that the stock might be undervalued.  Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value.  The Price to Cash Flow for NVR, Inc. (NYSE:NVR) is 16.318761.  This ratio is calculated by dividing the market value of a company by cash from operating activities.  Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability.  The price to earnings ratio for NVR, Inc. (NYSE:NVR) is 13.935471. This ratio is found by taking the current share price and dividing by earnings per share.

Successful stock market investing often begins with setting up measureable and viable goals. Investors who set attainable goals and craft a plan to achieve those goals may find themselves in a much better position than the investor who does not. It can be very tempting to jump into the stock market and start investing. When the market is riding high, investors may be quick to act so they do not miss out on the action. Entering the stock market without a plan can lead to future distress when the markets turn downward for an extended period of time. Having a plan for multiple scenarios can help the investor ride out the storm when it comes.