Advanced Drainage (Germany) Alpha and Beta Analysis
| 6DA Stock | EUR 111.10 2.45 2.25% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Advanced Drainage Systems. It also helps investors analyze the systematic and unsystematic risks associated with investing in Advanced Drainage over a specified time horizon. Remember, high Advanced Drainage's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Advanced Drainage's market risk premium analysis include:
Beta 0.13 | Alpha (0.32) | Risk 2.53 | Sharpe Ratio (0.14) | Expected Return (0.37) |
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
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Advanced Drainage Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Advanced Drainage market risk premium is the additional return an investor will receive from holding Advanced Drainage long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Advanced Drainage. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Advanced Drainage's performance over market.| α | -0.32 | β | 0.13 |
Advanced Drainage Fundamentals Vs Peers
Comparing Advanced Drainage's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Advanced Drainage's direct or indirect competition across all of the common fundamentals between Advanced Drainage and the related equities. This way, we can detect undervalued stocks with similar characteristics as Advanced Drainage or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Advanced Drainage's fundamental indicators could also be used in its relative valuation, which is a method of valuing Advanced Drainage by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Advanced Drainage to competition |
| Fundamentals | Advanced Drainage | Peer Average |
| Return On Equity | 0.48 | -0.31 |
| Return On Asset | 0.16 | -0.14 |
| Profit Margin | 0.15 % | (1.27) % |
| Operating Margin | 0.23 % | (5.51) % |
| Current Valuation | 7.85 B | 16.62 B |
| Shares Outstanding | 81.23 M | 571.82 M |
| Shares Owned By Insiders | 15.53 % | 10.09 % |
Advanced Drainage Opportunities
Advanced Drainage Return and Market Media
The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
| Timeline |
About Advanced Drainage Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Advanced or other stocks. Alpha measures the amount that position in Advanced Drainage Systems has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Advanced Drainage in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Advanced Drainage's short interest history, or implied volatility extrapolated from Advanced Drainage options trading.
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Additional Information and Resources on Investing in Advanced Stock
When determining whether Advanced Drainage Systems is a strong investment it is important to analyze Advanced Drainage's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Advanced Drainage's future performance. For an informed investment choice regarding Advanced Stock, refer to the following important reports:Check out Trending Equities 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 board of governors. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Advanced Drainage technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.