Alphabet Beta vs. Market Capitalization

    The Drivers Module shows relationships between Alphabet's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Alphabet over time as well as its relative position and ranking within its peers. Please also check Risk vs Return Analysis.

    Alphabet Market Capitalization vs. Beta Fundamental Analysis

    Alphabet is rated # 5 in beta category among related companies. It is one of the top stocks in market capitalization category among related companies creating about  623,786,259,542  of Market Capitalization 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.
    Alphabet 
    Beta 
     = 
    Covariance 
    Variance 
    =
    1.31
    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.
    Market Capitalization is total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
    Alphabet 
    Market Cap 
     = 
    Shares Outstanding 
    X  
    Share Price 
    =
    817.16 B
    In most publications or references market cap is broken down into the mega cap, large cap, mid cap, small cap, micro cap, and nano cap. Market Cap is a measurement of business as total market value of all of outstanding shares at a given time, and can be used to compare different companies based on their size.

    Market Capitalization

    Alphabet Market Capitalization Analysis
    Alphabet is one of the top stocks in market capitalization category among related companies. Market capitalization of Search Cloud And Integrated IT Services industry is currently estimated at about 1.04 Trillion. Alphabet totals roughly 817.16 Billion in market capitalization claiming about 79% of equities listed under Search Cloud And Integrated IT Services industry.
    Capitalization  Valuation  Total debt  Workforce  Revenue
      Beta 
          Alphabet Comparables 
    Alphabet is currently under evaluation in beta category among related companies.

    Beta Analysis

    As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Alphabet will likely underperform.