Home Depot Beta vs. Five Year Return

The Home Depot Inc -- USA Stock  

USD 170.2  0.25  0.15%

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

The Home Depot Five Year Return vs. Beta Fundamental Analysis

The Home Depot Inc is rated # 3 in beta category among related companies. It is rated # 3 in five year return category among related companies reporting about  2  of Five Year Return 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.
Home Depot 
Beta 
 = 
Covariance 
Variance 
=
0.95
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.
Five Year Return is considered as one of the best measures to evaluate fund performance especially from the mid and long term prospective. It shows the total annualized return generated from holding a fund for the last 5 years and represents capital appreciation of fund investments including all dividends, losses, and capital gains distributions.
Home Depot 
Five Year Return 
 = 
(Mean of Monthly Returns - 1) 
X  
100% 
=
1.9 %
Although Five Year Fund Returns can give a sense of overall fund potential, it is recommended to compare fund performance with other similar funds for the same five year time interval. Similarly, comparing overall find performance over the last five year with appropriate market index is a great way to determine how this fund will perform during different market fluctuations.

Comparison

Five Year Return Comparison
  Five Year Return 
      Home Depot Comparables 
Home Depot is rated # 2 in five year return category among related companies.
  Beta 
      Home Depot Comparables 
Home Depot is rated # 2 in beta category among related companies.

Beta Analysis

Home Depot returns are very sensitive to returns on the market. As market goes up or down, Home Depot is expected to follow.
The Home Depot, Inc. operates as a home improvement retailer. more
NameThe Home Depot Inc
Analyst Consensus
Piotroski F Score
Macroaxis Advice
Bond Rating
InstrumentUSA Stock Stocks Directory
RegionNorth America
ExchangeNew York Stock Exchange
CIK Number00354950.0
ISINUS4370761029
CUSIP437076102
CurrencyUSD - US Dollar
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