Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2024-04-30), Nelnet's Beta is 0.86.
Nelnet Beta Historical Data
The historical data trend for Nelnet'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 Credit Services subindustry, Nelnet'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.
Nelnet's Beta Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Nelnet's Beta distribution charts can be found below:
* The bar in red indicates where Nelnet's Beta falls into.
Nelnet 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.
Nelnet (NYSE:NNI) 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)
Nelnet Beta Related Terms
Thank you for viewing the detailed overview of Nelnet's Beta provided by GuruFocus.com. Please click on the following links to see related term pages.
Nelnet Inc is a United States based company engaged in these five segments; Loan Servicing and Systems focuses on student and consumer loan origination services and servicing, loan origination and servicing-related technology solutions, and outsourcing business services, Education Technology, Services, and Payment Processing provides education services, payment technology, and community management solutions for K-12 schools, institutions, churches, and businesses, Asset Generation and Management Includes the acquisition and management of student and other loan assets, Nelnet Bank focuses on the private education and unsecured consumer loan markets, and Communications provides fiber optic service for internet, telephone, and television services.
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