0 results available. Select is focused ,type to refine list, press Down to open the menu,
CommScope Holding Company, Inc. provides infrastructure solutions for communications, data center, and entertainment networks worldwide. The company operates in three segments: Connectivity and Cable ...
To view the full list of supported financial metrics please see Complete Metrics Listing.
Metrics similar to Beta (5 Year) in the risk category include:
A ratio that measures the risk or volatility of a company's share price in comparison to the market as a whole. A beta of 1.0 means that the company r...
Beta measures the risk or volatility of a company’s share price in comparison to the market as a whole. For example, a company with a beta of 1.1 will theoretically see its stock price increase by 1.1% for every 1% increase in the market. Put differently, if you’re expecting the overall market to return 8%, a stock with a beta of 1.5 should return 12%.
Beta is an important metric used in the Capital Asset Pricing Model (CAPM) to effectively calculate a company’s cost of equity that in turn, is applied in numerous valuation models.
A company’s beta can be calculated from market observations. However, since leverage (debt) can have a significant impact on a company’s stock price, one needs to unlever the beta to remove these effects. The unlevered beta can then be analyzed against the unlevered betas of comparable companies that operate in a similar industry. This allows an analyst to select the appropriate beta the represents the true risk of operating in that industry. This process is illustrated below.
Aswath Damodaran, a professor at NYU Stern, also publishes Industry Betas.