KAR Auction Services Alpha and Beta Analysis

KARDelisted Stock  USD 30.88  0.19  0.62%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as KAR Auction Services. It also helps investors analyze the systematic and unsystematic risks associated with investing in KAR Auction over a specified time horizon. Remember, high KAR Auction'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 KAR Auction's market risk premium analysis include:
Beta
(0.23)
Alpha
0.15
Risk
1.36
Sharpe Ratio
0.74
Expected Return
1
Please note that although KAR Auction 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, KAR Auction did 0.15  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 KAR Auction Services stock's relative risk over its benchmark. KAR Auction Services has a beta of 0.23  . As returns on the market increase, returns on owning KAR Auction are expected to decrease at a much lower rate. During the bear market, KAR Auction is likely to outperform the market. .
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 Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.

KAR Auction Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. KAR Auction market risk premium is the additional return an investor will receive from holding KAR Auction 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 KAR Auction. 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 KAR Auction's performance over market.
α0.15   β-0.23

KAR Auction Fundamentals Vs Peers

Comparing KAR Auction'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 KAR Auction's direct or indirect competition across all of the common fundamentals between KAR Auction and the related equities. This way, we can detect undervalued stocks with similar characteristics as KAR Auction or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of KAR Auction's fundamental indicators could also be used in its relative valuation, which is a method of valuing KAR Auction by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare KAR Auction to competition
FundamentalsKAR AuctionPeer Average
Return On Equity0.0857-0.31
Return On Asset0.0438-0.14
Profit Margin0.09 %(1.27) %
Operating Margin0.17 %(5.51) %
Current Valuation3.22 B16.62 B
Shares Outstanding106.26 M571.82 M
Shares Owned By Insiders1.87 %10.09 %

KAR Auction Opportunities

KAR Auction Return and Market Media

The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
1
Energy stocks tick higher as Trump administration announces fresh Russian sanctions
10/24/2025
2
OPENLANE Issues FY 2025 Earnings Guidance
11/05/2025
3
Acquisition by Peter Kelly of 167305 shares of KAR Auction subject to Rule 16b-3
11/13/2025
4
Aguia appoints new CEO to take charge of phosphate, gold resources
11/25/2025
5
Disposition of 1210 shares by William Mitchell of KAR Auction subject to Rule 16b-3
12/04/2025
6
Are Auto-Tires-Trucks Stocks Lagging Federal Signal This Year
12/08/2025
7
WINTON GROUP Ltd Acquires New Position in OPENLANE, Inc. KAR
12/09/2025
8
2 Cash-Producing Stocks to Keep an Eye On and 1 We Avoid
12/16/2025
9
With 63 percent ownership of the shares, Karoon Energy Ltd is heavily dominated by institutional owners
12/23/2025

About KAR Auction 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 KAR or other delisted stocks. Alpha measures the amount that position in KAR Auction Services 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.

KAR Auction Upcoming Company Events

As portrayed in its financial statements, the presentation of KAR Auction's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, KAR Auction's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of KAR Auction's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of KAR Auction. Please utilize our Beneish M Score to check the likelihood of KAR Auction's management manipulating its earnings.
20th of February 2024
Upcoming Quarterly Report
View
7th of May 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
20th of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View

Build Portfolio with KAR Auction

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

By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.

Other Consideration for investing in KAR Stock

If you are still planning to invest in KAR Auction Services check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the KAR Auction's history and understand the potential risks before investing.
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