Freshpet (Germany) Alpha and Beta Analysis
| 7FP Stock | EUR 142.75 3.40 2.44% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Freshpet. It also helps investors analyze the systematic and unsystematic risks associated with investing in Freshpet over a specified time horizon. Remember, high Freshpet'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 Freshpet's market risk premium analysis include:
Beta (0.11) | Alpha 0.2 | Risk 2.5 | Sharpe Ratio 0.0817 | Expected Return 0.2 |
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.
Freshpet |
Freshpet Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Freshpet market risk premium is the additional return an investor will receive from holding Freshpet 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 Freshpet. 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 Freshpet's performance over market.| α | 0.20 | β | -0.11 |
Freshpet Fundamentals Vs Peers
Comparing Freshpet'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 Freshpet's direct or indirect competition across all of the common fundamentals between Freshpet and the related equities. This way, we can detect undervalued stocks with similar characteristics as Freshpet or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Freshpet's fundamental indicators could also be used in its relative valuation, which is a method of valuing Freshpet by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Freshpet to competition |
| Fundamentals | Freshpet | Peer Average |
| Return On Equity | -0.0751 | -0.31 |
| Return On Asset | -0.037 | -0.14 |
| Profit Margin | (0.12) % | (1.27) % |
| Operating Margin | (0.10) % | (5.51) % |
| Current Valuation | 2.46 B | 16.62 B |
| Shares Outstanding | 48.02 M | 571.82 M |
| Shares Owned By Insiders | 3.34 % | 10.09 % |
Freshpet Opportunities
Freshpet Return and Market Media
The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
| Timeline |
About Freshpet 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 Freshpet or other stocks. Alpha measures the amount that position in Freshpet 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 Freshpet 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, Freshpet's short interest history, or implied volatility extrapolated from Freshpet options trading.
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Additional Information and Resources on Investing in Freshpet Stock
When determining whether Freshpet is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Freshpet Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Freshpet Stock. Highlighted below are key reports to facilitate an investment decision about Freshpet Stock: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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Freshpet 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.