Alcoa Beta vs. Price to Sales

    AA -- USA Stock  

    USD 45.27  0.39  0.87%

    The Drivers Module shows relationships between Alcoa's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Alcoa Corporation over time as well as its relative position and ranking within its peers. Check also Trending Equities.

    Alcoa Price to Sales vs. Beta Fundamental Analysis

    Alcoa Corporation is rated below average in beta category among related companies. It is number one stock in price to sales category among related companies fabricating about  1.01  of Price to Sales per Beta.
    Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of financial instrument to the financial market in which this instrument is traded. For example if Beta of equity is 2, it will be expected to significantly outperform market when market is going up and significantly underperform when market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns during over time.
    Alcoa 
    Beta 
     = 
    Covariance 
    Variance 
    =
    0.69
    In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
    Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
    Alcoa 
    P/S 
     = 
    MV Per Share 
    Revenue Per Share 
    =
    0.70 times
    The most important factor to remember is that the price of equity takes a firm's debt into account, whereas the sales does not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

    Alcoa Price to Sales Comparison

    Alcoa is currently under evaluation in price to sales category among related companies.
      Beta 
          Alcoa Comparables 
    Alcoa is currently under evaluation in beta category among related companies.

    Beta Analysis

    As returns on market increase, Alcoa returns are expected to increase less than the market. However during bear market, the loss on holding Alcoa will be expected to be smaller as well.