Brown Forman Stock Alpha and Beta Analysis
| BF-A Stock | USD 40.15 0.39 0.98% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Brown Forman. It also helps investors analyze the systematic and unsystematic risks associated with investing in Brown Forman over a specified time horizon. Remember, high Brown Forman'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 Brown Forman's market risk premium analysis include:
Beta (0.02) | Alpha (0.17) | Risk 1.53 | Sharpe Ratio (0.12) | Expected Return (0.19) |
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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.
Brown |
Brown Forman Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Brown Forman market risk premium is the additional return an investor will receive from holding Brown Forman 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 Brown Forman. 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 Brown Forman's performance over market.| α | -0.17 | β | -0.02 |
Brown Forman 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 Brown Forman's Buy-and-hold return. Our buy-and-hold chart shows how Brown Forman performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Brown Forman Market Price Analysis
Market price analysis indicators help investors to evaluate how Brown Forman stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Brown Forman shares will generate the highest return on investment. By understating and applying Brown Forman stock market price indicators, traders can identify Brown Forman position entry and exit signals to maximize returns.
Brown Forman Return and Market Media
The median price of Brown Forman for the period between Sat, Aug 24, 2024 and Fri, Nov 22, 2024 is 45.56 with a coefficient of variation of 5.72. The daily time series for the period is distributed with a sample standard deviation of 2.57, arithmetic mean of 45.05, and mean deviation of 1.92. The Stock received some media coverage during the period. Price Growth (%) |
| Timeline |
1 | Acquisition by Brown Stuart R of 3299 shares of Brown Forman subject to Rule 16b-3 | 09/04/2024 |
2 | Brown-Forman upgraded to Overweight from Equal Weight at Barclays - TipRanks | 09/30/2024 |
| Brown Forman dividend paid on 1st of October 2024 | 10/01/2024 |
3 | Disposition of 49500 shares by Brown Stuart R of Brown Forman subject to Rule 16b-3 | 11/13/2024 |
4 | Brown-Forman price target lowered to 45 from 48 at BofA - TipRanks | 11/19/2024 |
About Brown Forman 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 Brown or other stocks. Alpha measures the amount that position in Brown Forman 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.
| 2021 | 2023 | 2024 (projected) | Dividend Yield | 0.0257 | 0.0177 | 0.0248 | Price To Sales Ratio | 8.21 | 5.46 | 3.14 |
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 Brown Forman 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, Brown Forman's short interest history, or implied volatility extrapolated from Brown Forman options trading.
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Other Information on Investing in Brown Stock
Brown Forman financial ratios help investors to determine whether Brown 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 Brown with respect to the benefits of owning Brown Forman security.