Intuitive Surgical Jensen Alpha
| ISRG Stock | | | USD 431.58 11.52 2.74% |
Jensen Alpha measures the return attributable to active skill rather than passive market exposure. It is the residual return after subtracting the risk-free rate and the beta-adjusted market premium — the return the asset should have earned based solely on its systematic risk. Below is Intuitive Surgical's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
With Jensen Alpha at
-0.20, Intuitive Surgical shows slightly negative alpha — return marginally below the CAPM-predicted level. Intuitive Surgical has slightly underperformed relative to what its market beta would imply.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | -0.20 | |
| ER[a] | = | Expected return on investing in Intuitive Surgical |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Intuitive Surgical and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Intuitive Surgical falls above the -0.21 peer average for Jensen Alpha. West Pharmaceutical Services leads at 0.506 while Embecta Corp registers the lowest at -1.2715. Intuitive Surgical has generated more excess return relative to its market exposure than the peer group average.
Jensen Alpha Relative To Other Indicators
The chart below plots Jensen Alpha against Maximum Drawdown for Intuitive Surgical and its peers. Each point represents one equity — position along the horizontal axis shows Jensen Alpha while the vertical axis shows Maximum Drawdown. Equities that cluster in different quadrants carry distinct risk-return profiles. Use the dropdowns to swap in other indicators for either axis.
Compare Intuitive Surgical to PeersMethodology, Assumptions & Data Sources
The current Jensen Alpha for Intuitive Surgical is -0.20. Jensen Alpha for Intuitive Surgical is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. Data sources include daily closing prices from supported exchanges, with standard corporate action adjustments applied. Intuitive Surgical operates in the health care sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Values are specific to the selected time horizon and may differ across measurement periods. This indicator does not constitute investment advice.
Other Technical Indicators