Fortune Brands Home Alpha and Beta Analysis

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Fortune Brands Home. It also helps investors analyze the systematic and unsystematic risks associated with investing in Fortune Brands over a specified time horizon. Remember, high Fortune Brands' 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 Fortune Brands' market risk premium analysis include:
Beta
0.39
Alpha
0.14
Risk
0.0
Sharpe Ratio
0.0
Expected Return
0.0
Please note that although Fortune Brands 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., NYSE Composite index.) So in this particular case, Fortune Brands did 0.14  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 Fortune Brands Home stock's relative risk over its benchmark. Fortune Brands Home has a beta of 0.39  . As returns on the market increase, Fortune Brands' returns are expected to increase less than the market. However, during the bear market, the loss of holding Fortune Brands is expected to be smaller as well. .
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 Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate.

Fortune Brands Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Fortune Brands market risk premium is the additional return an investor will receive from holding Fortune Brands 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 Fortune Brands. 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 Fortune Brands' performance over market.
α0.14   β0.39

Fortune Brands Fundamentals Vs Peers

Comparing Fortune Brands' 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 Fortune Brands' direct or indirect competition across all of the common fundamentals between Fortune Brands and the related equities. This way, we can detect undervalued stocks with similar characteristics as Fortune Brands or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Fortune Brands' fundamental indicators could also be used in its relative valuation, which is a method of valuing Fortune Brands by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Fortune Brands to competition
FundamentalsFortune BrandsPeer Average
Return On Equity0.25-0.31
Return On Asset0.0886-0.14
Profit Margin0.09 %(1.27) %
Operating Margin0.14 %(5.51) %
Current Valuation11.11 B16.62 B
Shares Outstanding128.02 M571.82 M
Shares Owned By Insiders0.41 %10.09 %

Fortune Brands Opportunities

Fortune Brands Return and Market Media

The Stock did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  
 
Fortune Brands dividend paid on 14th of December 2022
12/14/2022

About Fortune Brands 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 Fortune or other delisted stocks. Alpha measures the amount that position in Fortune Brands Home 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 Fortune Brands 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, Fortune Brands' short interest history, or implied volatility extrapolated from Fortune Brands options trading.

Build Portfolio with Fortune Brands

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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 Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate.
Note that the Fortune Brands Home information on this page should be used as a complementary analysis to other Fortune Brands' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.

Other Consideration for investing in Fortune Stock

If you are still planning to invest in Fortune Brands Home 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 Fortune Brands' history and understand the potential risks before investing.
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