Aurora Cannabis Stock Alpha and Beta Analysis

ACB Stock  USD 4.41  0.11  2.56%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Aurora Cannabis. It also helps investors analyze the systematic and unsystematic risks associated with investing in Aurora Cannabis over a specified time horizon. Remember, high Aurora Cannabis' 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 Aurora Cannabis' market risk premium analysis include:
Beta
1.68
Alpha
0.41
Risk
7.32
Sharpe Ratio
0.0366
Expected Return
0.27
Please note that although Aurora Cannabis alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., Dow Jones Industrial index.) So in this particular case, Aurora Cannabis did 0.41  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Aurora Cannabis stock's relative risk over its benchmark. Aurora Cannabis has a beta of 1.68  . As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Aurora Cannabis will likely underperform. At present, Aurora Cannabis' Enterprise Value Over EBITDA is projected to increase significantly based on the last few years of reporting. The current year's Enterprise Value Multiple is expected to grow to 12.40, whereas Book Value Per Share is forecasted to decline to 10.85.

Enterprise Value

315.64 Million

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.
  
Check out Aurora Cannabis Backtesting, Aurora Cannabis Valuation, Aurora Cannabis Correlation, Aurora Cannabis Hype Analysis, Aurora Cannabis Volatility, Aurora Cannabis History and analyze Aurora Cannabis Performance.
For information on how to trade Aurora Stock refer to our How to Trade Aurora Stock guide.

Aurora Cannabis Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Aurora Cannabis market risk premium is the additional return an investor will receive from holding Aurora Cannabis 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 Aurora Cannabis. 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 Aurora Cannabis' performance over market.
α0.41   β1.68

Aurora Cannabis expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Aurora Cannabis' Buy-and-hold return. Our buy-and-hold chart shows how Aurora Cannabis performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Aurora Cannabis Market Price Analysis

Market price analysis indicators help investors to evaluate how Aurora Cannabis stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Aurora Cannabis shares will generate the highest return on investment. By understating and applying Aurora Cannabis stock market price indicators, traders can identify Aurora Cannabis position entry and exit signals to maximize returns.

Aurora Cannabis Return and Market Media

The median price of Aurora Cannabis for the period between Sun, Dec 15, 2024 and Sat, Mar 15, 2025 is 4.37 with a coefficient of variation of 17.82. The daily time series for the period is distributed with a sample standard deviation of 0.83, arithmetic mean of 4.66, and mean deviation of 0.67. The Stock received a lot of media exposure during the period.
 Price Growth (%)  
       Timeline  
1
Stocks In Play Aurora Cannabis Inc. - Barchart
01/10/2025
2
Aurora Cannabis Inc. Surpasses Q3 Earnings and Revenue Estimates
02/05/2025
3
Cannabis Stocks To Consider February 05th
02/06/2025
4
Roth Capital Comments on Aurora Cannabis Q1 Earnings
02/07/2025
5
All You Need to Know About Aurora Cannabis Rating Upgrade to Strong Buy
02/10/2025
6
Aurora Cannabis Skyrockets After Earnings Should You Buy Into the Rally
02/12/2025
7
Industrial Hemp Market to Grow by USD 18.31 Billion from 2025-2029, Driven by High Demand from the Textile Industry, Report on How AI is Driving Market Transfor...
02/13/2025
8
Cannabis Stocks To Research February 24th
02/24/2025
9
Is Aurora Cannabis Stock Outpacing Its Medical Peers This Year
02/26/2025
10
Aurora Cannabis Stock Is up 46 percent in 2025 Are Investors Going From 5 Years of Pain to a 2025 Gain - MSN
03/04/2025
11
CBD-infused Products Market to Reach 291. Billion by 2032--Exclusive Report by Meticulous Research
03/12/2025

About Aurora Cannabis 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 Aurora or other stocks. Alpha measures the amount that position in Aurora Cannabis 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.
 2022 2023 2024 2025 (projected)
Days Sales Outstanding64.6961.3370.52106.78
PTB Ratio0.630.50.570.54

Aurora Cannabis Upcoming Company Events

As portrayed in its financial statements, the presentation of Aurora Cannabis' financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Aurora Cannabis' leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Aurora Cannabis' public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Aurora Cannabis. Please utilize our Beneish M Score to check the likelihood of Aurora Cannabis' management manipulating its earnings.
8th of February 2024
Upcoming Quarterly Report
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12th of June 2024
Next Financial Report
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31st of December 2023
Next Fiscal Quarter End
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12th of June 2024
Next Fiscal Year End
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30th of September 2023
Last Quarter Report
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31st of March 2023
Last Financial Announcement
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When determining whether Aurora Cannabis offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Aurora Cannabis' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Aurora Cannabis Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Aurora Cannabis Stock:
Aurora Cannabis 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.
A focus of Aurora Cannabis technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Aurora Cannabis trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...