Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2024-04-27), Lantronix's Beta is 1.87.
Lantronix Beta Historical Data
The historical data trend for Lantronix's Beta can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Communication Equipment subindustry, Lantronix's Beta, along with its competitors' market caps and Beta data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lantronix's Beta Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Lantronix's Beta distribution charts can be found below:
* The bar in red indicates where Lantronix's Beta falls into.
Lantronix Beta Calculation
Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. A stock's beta can be calculated by dividing the product of the covariance of the individual stock's returns and the market's returns by the variance of the market's returns over a specified period. Basically, GuruFocus uses the returns calculated over three-year period.
Lantronix (NAS:LTRX) Beta Explanation
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. We usually compare beta to 1. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Beta is primarily used in the Capital Asset Pricing Model (CAPM) to calculate the Cost of Equity, which can be used in the calculation of WACC %. The formula of Cost of Equity is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
Lantronix Beta Related Terms
Thank you for viewing the detailed overview of Lantronix's Beta provided by GuruFocus.com. Please click on the following links to see related term pages.
Lantronix Inc is a networking company. It provides secure data access and management solutions for the Internet of Things (IoT) and information technology assets. It organizes its products and solutions into three product lines named as IoT Solutions, IoT System Solutions, and Software & Services. Embedded IoT solution segment is the key revenue driver for the company. The company serves a diverse range of markets including healthcare, industrial, security, energy, transportation, and government networking. Its primary geographic markets are the Americas, Europe, the Middle East and Africa, and Asia Pacific Japan. The Americas contribute the vast majority of total revenue.
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