Toromont Industries Stock Alpha and Beta Analysis

TIH Stock  CAD 113.92  2.45  2.20%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Toromont Industries. It also helps investors analyze the systematic and unsystematic risks associated with investing in Toromont Industries over a specified time horizon. Remember, high Toromont Industries' 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 Toromont Industries' market risk premium analysis include:
Beta
0.54
Alpha
0.0951
Risk
1.27
Sharpe Ratio
0.0191
Expected Return
0.0243
Please note that although Toromont Industries 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, Toromont Industries did 0.1  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 Toromont Industries stock's relative risk over its benchmark. Toromont Industries has a beta of 0.54  . As returns on the market increase, Toromont Industries' returns are expected to increase less than the market. However, during the bear market, the loss of holding Toromont Industries is expected to be smaller as well. At this time, Toromont Industries' Book Value Per Share is very stable compared to the past year. As of the 15th of March 2025, Tangible Book Value Per Share is likely to grow to 31.86, while Enterprise Value Over EBITDA is likely to drop 5.98.

Enterprise Value

9.56 Billion

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 Toromont Industries Backtesting, Toromont Industries Valuation, Toromont Industries Correlation, Toromont Industries Hype Analysis, Toromont Industries Volatility, Toromont Industries History and analyze Toromont Industries Performance.

Toromont Industries Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Toromont Industries market risk premium is the additional return an investor will receive from holding Toromont Industries 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 Toromont Industries. 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 Toromont Industries' performance over market.
α0.1   β0.54

Toromont Industries 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 Toromont Industries' Buy-and-hold return. Our buy-and-hold chart shows how Toromont Industries performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Toromont Industries Market Price Analysis

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

Toromont Industries Return and Market Media

The median price of Toromont Industries for the period between Sun, Dec 15, 2024 and Sat, Mar 15, 2025 is 115.45 with a coefficient of variation of 3.22. The daily time series for the period is distributed with a sample standard deviation of 3.75, arithmetic mean of 116.23, and mean deviation of 3.26. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
1
Toromont Industries to Release 2024 Financial Results - TipRanks
01/28/2025
2
Toromont Industries Boosts Dividend Amid Strong Q4 Results - TipRanks
02/11/2025
3
Toromont Industries Ltd. Full-Year Results Heres What Analysts Are Forecasting For This Year - Yahoo Finance
02/14/2025
4
Pivots Trading Plans and Risk Controls - Stock Traders Daily
02/25/2025
5
Toromont Industries Reaches New 52-Week Low - Heres What Happened - MarketBeat
03/04/2025
6
Trading With Integrated Risk Controls - Stock Traders Daily
03/13/2025

About Toromont Industries 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 Toromont or other stocks. Alpha measures the amount that position in Toromont Industries 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)
Dividend Yield0.01560.01480.01650.0256
Price To Sales Ratio1.92.031.851.95
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 Toromont Industries 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, Toromont Industries' short interest history, or implied volatility extrapolated from Toromont Industries options trading.

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Other Information on Investing in Toromont Stock

Toromont Industries financial ratios help investors to determine whether Toromont Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Toromont with respect to the benefits of owning Toromont Industries security.