Toromont Industries Stock Alpha and Beta Analysis
| TIH Stock | CAD 116.61 0.13 0.11% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Toromont Industries. It also helps investors analyze the systematic and unsystematic risks associated with investing in Toromont Industries over a specified time horizon. Remember, high Toromont Industries' 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 Toromont Industries' market risk premium analysis include:
Beta 0.0732 | Alpha (0.08) | Risk 1.11 | Sharpe Ratio (0.03) | Expected Return (0.04) |
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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.
Toromont |
Toromont Industries Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Toromont Industries market risk premium is the additional return an investor will receive from holding Toromont Industries 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 Toromont Industries. 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 Toromont Industries' performance over market.| α | -0.08 | β | 0.07 |
Toromont Industries 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 Toromont Industries' Buy-and-hold return. Our buy-and-hold chart shows how Toromont Industries performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Toromont Industries Market Price Analysis
Market price analysis indicators help investors to evaluate how Toromont Industries stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Toromont Industries shares will generate the highest return on investment. By understating and applying Toromont Industries stock market price indicators, traders can identify Toromont Industries position entry and exit signals to maximize returns.
Toromont Industries Return and Market Media
The median price of Toromont Industries for the period between Wed, Aug 28, 2024 and Tue, Nov 26, 2024 is 125.31 with a coefficient of variation of 4.57. The daily time series for the period is distributed with a sample standard deviation of 5.72, arithmetic mean of 125.1, and mean deviation of 5.15. The Stock received some media coverage during the period. Price Growth (%) |
| Timeline |
1 | Toromont Industries five-year earnings growth trails the impressive shareholder returns - Simply Wall St | 09/16/2024 |
2 | Toromont Industries Stock Price Crosses Above Two Hundred Day Moving Average of 124.69 - MarketBeat | 10/01/2024 |
3 | Toromont Industries to Announce Q3 2024 Results - TipRanks | 10/21/2024 |
About Toromont Industries 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 Toromont or other stocks. Alpha measures the amount that position in Toromont Industries 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 | 2022 | 2023 | 2024 (projected) | Dividend Yield | 0.0116 | 0.0156 | 0.0148 | 0.0259 | Price To Sales Ratio | 2.43 | 1.9 | 2.03 | 2.13 |
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 Toromont Industries 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, Toromont Industries' short interest history, or implied volatility extrapolated from Toromont Industries options trading.
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Other Information on Investing in Toromont Stock
Toromont Industries financial ratios help investors to determine whether Toromont 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 Toromont with respect to the benefits of owning Toromont Industries security.