Some stocks see that their prices are coming together with the market. Others tend to have stronger, smoother or unrelated price movements. Beta is a metric that is widely used to measure stock exposure to market risk (volatility). Before we go on, it is worth noting that Warren Buffett expressed in his 2014 letter to shareholders that there is much volatility from imagining a risk. However, beta can still be quite useful. The first thing that is understood is beta that is full market beta. Stock with beta is less volatile than the market, or more volatile but is not composite with the whole market. By contrast, beta stock of more than one person is generally moving in a similar way to the market in the long term, but with more price changes.
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What does AMRS beta value for investors?
Looking at the last five years, Amyris has a beta of 0.91. The fact that this is significantly lower than 1 indicates that its share price movements were not historically very sensitive to overall market volatility. This suggests that volatility in your portfolio will reduce volatility arising from wider market movements, assuming that a weighted average for a portfolio is greater than 0.91. It is worth considering Beta, but it is also important to think whether Amyris is earning and increasing income. You can look for yourself, below.
What effect does AMRS have on their beta?
Amyris is a relatively small company. It has US $ 306m of market capitalization, which means that it is probably under the radar of most investors. It is not unusual for very small companies to have a low beta value, particularly if only a small number of shares are traded. Even when they are traded more actively, the share price is often more susceptible to company specific developments than overall market volatility.
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As Amomis has no major impact on market movements, its share price is likely to depend much more on specific company developments. It may pay for a closer look at metrics such as income growth, earnings growth, and debt. This section aims to educate investors about beta values, but it is worth looking at the important advantages of particular companies, such as health accounting and Amyris financial performance. I recommend that you continue your research by looking at the following: t
- Future Overview: What informed industry analysts predict for future AMRS growth? See our free research report on analysts consensus on AMRS view.
- Record of past records: Does AMRS consistently function well regardless of the boom and downs in the market? Make more detail in past performance analysis and look for free visual representations of AMRS's historical history to get more clarity.
- Other Interesting StocksIt is worth checking how AMRS measures against other companies on valuation. You could start with this free list of potential options.
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We aim to conduct long-term research analysis aimed at driving basic data. Please note that our analysis may not be included in the companies' most sensitive price notices or qualitative material. Thank you for reading."data reactid =" 52 ">If you see a corrected error needed, please contact the editor at [email protected] This article is a general Simply Wall St. It is not recommended that any stock be bought or sold, nor does it take account of your objectives, or your financial situation. Simply standing Wall Street in the mentioned stocks.
We aim to conduct long-term research analysis aimed at driving basic data. Please note that our analysis may not be included in the companies' most sensitive price notices or qualitative material. Thank you for reading.