Alphabet Jensen Alpha

Alphabet Inc has current Jensen Alpha of (0.23). 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.
Alphabet 
Jensen Alpha 
 = 
ER[a] - RFR * (1-BETA) 
BETA * ER[b]) 
 = 
(0.23)
ER[a] =   Expected return on investing in Alphabet
ER[b] =   Expected return on market index or selected benchmark
BETA =   Beta coefficient between Alphabet and the market
RFR =   Risk Free Rate of return. Typically T-Bill Rate

Jensen Alpha Comparison

Alphabet 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 Alphabet to competition
Alphabet Inc. through its subsidiaries offer online advertising services in the United States the United Kingdom and rest of the world. more
NameAlphabet Inc
InstrumentUSA Stock
RegionNorth America
ExchangeNASDAQ
CIK Number0001652044
ISINUS02079K1079
Analyst Consensus
Piotroski F Score
Macroaxis Advice
Bond Rating
CurrencyUSD - US Dollar