Salesforce Jensen Alpha

salesforce inc has current Jensen Alpha of (0.22). Jensen alpha is a measure of the returns that are attributable to the managers ability to select security and time the market. In other words it is the returns remaining after deducting what would have been attributable to beta returns (which do not require skill) and the risk free rate.
Salesforce 
Jensen Alpha 
 = 
ER[a] - RFR * (1-BETA) 
BETA * ER[b]) 
 = 
(0.22)
ER[a] =   Expected return on investing in Salesforce
ER[b] =   Expected return on market index or selected benchmark
BETA =   Beta coefficient between Salesforce and the market
RFR =   Risk Free Rate of return. Typically T-Bill Rate

Jensen Alpha Comparison

salesforce inc is rated below average in jensen alpha category among related companies. It is rated below average in maximum drawdown category among related companies .
Jensen alpha is the difference between the return of the portfolio, and what the portfolio should theoretically have earned. Any portfolio can be expected to earn the risk free rate (RF), plus the market risk premium (which is given by [Beta x (Market Portfolio Return - Risk Free Rate)]. Anything remaining over and above is alpha.
Compare Salesforce to competition
salesforce.com inc. offer enterprise cloud computing solutions with a focus on customer relationship management to various businesses and industries worldwide. more
Namesalesforce inc
InstrumentUSA Stock
RegionNorth America
ExchangeNew York Stock Exchange
CIK Number0001108524
ISINUS79466L3024
CUSIP79466L302
Analyst Consensus
Piotroski F Score
Macroaxis Advice
CurrencyUSD - US Dollar