Formula Stock Alpha and Beta Analysis

FORTY Stock  USD 64.27  10.44  13.97%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Formula Systems 1985. It also helps investors analyze the systematic and unsystematic risks associated with investing in Formula Systems over a specified time horizon. Remember, high Formula Systems' alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Check out Formula Systems Backtesting, Formula Systems Valuation, Formula Systems Correlation, Formula Systems Hype Analysis, Formula Systems Volatility, Formula Systems History and analyze Formula Systems Performance. For more information on how to buy Formula Stock please use our How to Invest in Formula Systems guide.
Please note that although Formula Systems alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., NYSE Composite index.) So in this particular case, Formula Systems did 0.16  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Formula Systems 1985 stock's relative risk over its benchmark. Formula Systems 1985 has a beta of 0.56  . Let's try to break down what Formula's beta means in this case. As returns on the market increase, Formula Systems returns are expected to increase less than the market. However, during the bear market, the loss on holding Formula Systems will be expected to be smaller as well.
Formula Systems Enterprise Value over EBIT is fairly stable at the moment as compared to the past year. Formula Systems reported Enterprise Value over EBIT of 9.00 in 2022. Price to Book Value is likely to rise to 2.06 in 2023, whereas Book Value per Share is likely to drop 34.41 in 2023.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Formula Systems Quarterly Book Value per Share


Formula Systems Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Formula Systems market risk premium is the additional return an investor will receive from holding Formula Systems long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Formula Systems. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Formula Systems' performance over market.
α-0.16   β0.56
90 days against NYA

Formula Systems expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Formula Systems' Buy-and-hold return. Our buy-and-hold chart shows how Formula Systems performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Formula Systems Market Price Analysis

Market price analysis indicators help investors to evaluate how Formula Systems stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Formula Systems shares will generate the highest return on investment. By understating and applying Formula Systems stock market price indicators, traders can identify Formula Systems position entry and exit signals to maximize returns.

Formula Systems Return and Market Media

The median price of Formula Systems for the period between Fri, Dec 30, 2022 and Thu, Mar 30, 2023 is 73.66 with a coefficient of variation of 7.42. The daily time series for the period is distributed with a sample standard deviation of 5.43, arithmetic mean of 73.18, and mean deviation of 4.63. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  

About Formula Systems Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Formula or other stocks. Alpha measures the amount that position in Formula Systems 1985 has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2020 2021 2022 2023 (projected)
Book Value per Share32.9235.3836.0834.41
Asset Turnover0.860.930.941.0

Formula Systems Upcoming Company Events

As portrayed in its financial statements, the presentation of Formula Systems' financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Formula Systems' leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Formula Systems' public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Formula Systems. Please utilize our Beneish M Score to check the likelihood of Formula Systems' management manipulating its earnings.
17th of May 2023
Upcoming Quarterly Report
31st of March 2023
Next Fiscal Quarter End

Build Portfolio with Formula Systems

Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.

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By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Check out Formula Systems Backtesting, Formula Systems Valuation, Formula Systems Correlation, Formula Systems Hype Analysis, Formula Systems Volatility, Formula Systems History and analyze Formula Systems Performance. For more information on how to buy Formula Stock please use our How to Invest in Formula Systems guide. You can also try Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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When running Formula Systems 1985 price analysis, check to measure Formula Systems' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Formula Systems is operating at the current time. Most of Formula Systems' value examination focuses on studying past and present price action to predict the probability of Formula Systems' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Formula Systems' price. Additionally, you may evaluate how the addition of Formula Systems to your portfolios can decrease your overall portfolio volatility.
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Formula Systems technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Formula Systems technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Formula Systems trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...