STM Group (UK) Alpha and Beta Analysis
| STM Stock | 61.50 0.00 0.00% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as STM Group Plc. It also helps investors analyze the systematic and unsystematic risks associated with investing in STM Group over a specified time horizon. Remember, high STM Group'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 STM Group's market risk premium analysis include:
Beta 0.2 | Alpha 0.22 | Risk 1.99 | Sharpe Ratio 0.2 | Expected Return 0.4 |
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.
STM |
STM Group Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. STM Group market risk premium is the additional return an investor will receive from holding STM Group 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 STM Group. 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 STM Group's performance over market.| α | 0.22 | β | 0.20 |
STM Group Fundamentals Vs Peers
Comparing STM Group'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 STM Group's direct or indirect competition across all of the common fundamentals between STM Group and the related equities. This way, we can detect undervalued stocks with similar characteristics as STM Group or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of STM Group's fundamental indicators could also be used in its relative valuation, which is a method of valuing STM Group by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare STM Group to competition |
| Fundamentals | STM Group | Peer Average |
| Return On Equity | 0.0417 | -0.31 |
| Return On Asset | 0.0238 | -0.14 |
| Profit Margin | 0.05 % | (1.27) % |
| Operating Margin | 0.11 % | (5.51) % |
| Current Valuation | 21.49 M | 16.62 B |
| Shares Outstanding | 57.77 M | 571.82 M |
| Shares Owned By Insiders | 46.46 % | 10.09 % |
STM Group Opportunities
STM Group Return and Market Media
The Stock received some media coverage during the period. Price Growth (%) |
| Timeline |
1 | STM Group Acquisition Deadline Extended by Bidco - TipRanks | 08/30/2024 |
2 | STM Group PLC Announces Trading Suspension Amid Acquisition - TipRanks | 10/31/2024 |
About STM Group 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 STM or other stocks. Alpha measures the amount that position in STM Group Plc 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 STM Group 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, STM Group's short interest history, or implied volatility extrapolated from STM Group options trading.
Build Portfolio with STM Group
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Other Information on Investing in STM Stock
STM Group financial ratios help investors to determine whether STM 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 STM with respect to the benefits of owning STM Group security.