Primoris Services Jensen Alpha
| PRIM Stock | | | USD 114.39 9.59 9.15% |
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 Primoris Services's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
Primoris Services carries a Jensen Alpha of
-0.15, consistent with slightly negative alpha — return marginally below the CAPM-predicted level. Primoris Services has slightly underperformed relative to what its market beta would imply.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | -0.15 | |
| ER[a] | = | Expected return on investing in Primoris Services |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Primoris Services and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
The peer group averages 0.13 for Jensen Alpha, with Primoris Services at -0.146 falling below that level. Readings span -0.4185 (Tetra Tech) to 0.8623 (IES Holdings). Primoris Services has generated less 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 Primoris Services 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 Primoris Services to PeersMethodology, Assumptions & Data Sources
Primoris Services' Jensen Alpha currently stands at -0.15. Jensen Alpha for Primoris Services is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. The underlying data comes from exchange-reported daily closes with corporate action adjustments applied where relevant. Primoris Services operates in the industrials 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.
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