Larsen Toubro (India) Alpha and Beta Analysis
| LT Stock | 3,725 58.75 1.60% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Larsen Toubro Limited. It also helps investors analyze the systematic and unsystematic risks associated with investing in Larsen Toubro over a specified time horizon. Remember, high Larsen Toubro'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 Larsen Toubro's market risk premium analysis include:
Beta 0.5 | Alpha (0.05) | Risk 1.63 | Sharpe Ratio 0.0187 | Expected Return 0.0305 |
Larsen Toubro Quarterly Cash And Equivalents |
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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.
Larsen |
Larsen Toubro Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Larsen Toubro market risk premium is the additional return an investor will receive from holding Larsen Toubro 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 Larsen Toubro. 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 Larsen Toubro's performance over market.| α | -0.05 | β | 0.50 |
Larsen Toubro 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 Larsen Toubro's Buy-and-hold return. Our buy-and-hold chart shows how Larsen Toubro performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Larsen Toubro Market Price Analysis
Market price analysis indicators help investors to evaluate how Larsen Toubro stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Larsen Toubro shares will generate the highest return on investment. By understating and applying Larsen Toubro stock market price indicators, traders can identify Larsen Toubro position entry and exit signals to maximize returns.
Larsen Toubro Return and Market Media
The median price of Larsen Toubro for the period between Mon, Sep 2, 2024 and Sun, Dec 1, 2024 is 3603.5 with a coefficient of variation of 3.04. The daily time series for the period is distributed with a sample standard deviation of 109.38, arithmetic mean of 3598.1, and mean deviation of 89.0. The Stock received some media coverage during the period. Price Growth (%) |
| Timeline |
1 | Larsen Toubro outperforms competitors on strong trading day - MarketWatch | 11/22/2024 |
About Larsen Toubro 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 Larsen or other stocks. Alpha measures the amount that position in Larsen Toubro Limited 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 Larsen Toubro 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, Larsen Toubro's short interest history, or implied volatility extrapolated from Larsen Toubro options trading.
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Other Information on Investing in Larsen Stock
Larsen Toubro financial ratios help investors to determine whether Larsen 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 Larsen with respect to the benefits of owning Larsen Toubro security.