Zoom Video (UK) Alpha and Beta Analysis
| 0A1O Stock | 82.85 0.72 0.88% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Zoom Video Communications. It also helps investors analyze the systematic and unsystematic risks associated with investing in Zoom Video over a specified time horizon. Remember, high Zoom Video'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 Zoom Video's market risk premium analysis include:
Beta (0.03) | Alpha 0.0408 | Risk 1.59 | Sharpe Ratio (0.01) | Expected Return (0.01) |
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.
Zoom |
Zoom Video Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Zoom Video market risk premium is the additional return an investor will receive from holding Zoom Video 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 Zoom Video. 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 Zoom Video's performance over market.| α | 0.04 | β | -0.03 |
Zoom Video Fundamentals Vs Peers
Comparing Zoom Video'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 Zoom Video's direct or indirect competition across all of the common fundamentals between Zoom Video and the related equities. This way, we can detect undervalued stocks with similar characteristics as Zoom Video or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Zoom Video's fundamental indicators could also be used in its relative valuation, which is a method of valuing Zoom Video by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Zoom Video to competition |
| Fundamentals | Zoom Video | Peer Average |
| Return On Equity | 0.12 | -0.31 |
| Return On Asset | 0.0487 | -0.14 |
| Profit Margin | 0.22 % | (1.27) % |
| Operating Margin | 0.18 % | (5.51) % |
| Current Valuation | 17.56 B | 16.62 B |
| Shares Owned By Insiders | 0.10 % | 10.09 % |
| Shares Owned By Institutions | 73.94 % | 39.21 % |
Zoom Video Opportunities
Zoom Video Return and Market Media
The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | Zoom Video Communications, Inc. Stifel Raises Price Target to 90 Following Earnings Report - Yahoo Finance | 12/02/2024 |
2 | Rockefeller Capital Management L.P. Has 1.04 Million Position in Zoom Video Communications, Inc. - MarketBeat | 12/09/2024 |
3 | Zoom Communications Inc. stock rises Thursday, outperforms market - MarketWatch | 12/12/2024 |
4 | Zoom Communications Inc. stock falls Wednesday, underperforms market - MarketWatch | 01/08/2025 |
5 | Zoom Communications Inc. stock falls Friday, underperforms market - MarketWatch | 01/17/2025 |
6 | Robeco Institutional Asset Management B.V. Has 102.26 Million Stock Position in Zoom Video Communications, Inc. - MarketBeat | 01/29/2025 |
7 | Zoom Communications, Inc. is Attracting Investor Attention Here is What You Should Know - Yahoo Finance | 02/12/2025 |
8 | Zoom Video Communications Is About to Report Earnings Next Week. Here Is What to Expect - Markets Insider | 02/20/2025 |
About Zoom Video 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 Zoom or other stocks. Alpha measures the amount that position in Zoom Video Communications 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 Zoom Video 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, Zoom Video's short interest history, or implied volatility extrapolated from Zoom Video options trading.
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Additional Tools for Zoom Stock Analysis
When running Zoom Video's price analysis, check to measure Zoom Video'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 Zoom Video is operating at the current time. Most of Zoom Video's value examination focuses on studying past and present price action to predict the probability of Zoom Video's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Zoom Video's price. Additionally, you may evaluate how the addition of Zoom Video to your portfolios can decrease your overall portfolio volatility.