NBT Bancorp Beta vs. Total Debt Fundamental Analysis
NBT Bancorp is regarded second in total debt category among related companies. It is regarded fourth in beta category among related companies . The ratio of Total Debt to Beta for NBT Bancorp is about 1,052,083,333
NBT Bancorp is regarded second in total debt category among related companies. Total debt of Banks - Regional - US industry is now estimated at about 4.92 Billion. NBT Bancorp totals roughly 1.01 Billion in total debt claiming about 21% of stocks in Banks - Regional - US industry.Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principle payments will eventually prevent the firm from borrow excessively.
In most industries, total debt may also include current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meaningful to compare total debt amounts between companies that operate within the same sector.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.
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.
NBT Bancorp Beta Comparison
NBT Bancorp returns are very sensitive to returns on the market. As market goes up or down, NBT Bancorp is expected to follow.