Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2024-04-25), PennantPark Floating Rate Capital's Beta is 0.90.
PennantPark Floating Rate Capital Beta Historical Data
The historical data trend for PennantPark Floating Rate Capital'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.
Competitive Comparison of PennantPark Floating Rate Capital's Beta
For the Asset Management subindustry, PennantPark Floating Rate Capital'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.
PennantPark Floating Rate Capital's Beta Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, PennantPark Floating Rate Capital's Beta distribution charts can be found below:
* The bar in red indicates where PennantPark Floating Rate Capital's Beta falls into.
PennantPark Floating Rate Capital 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.
PennantPark Floating Rate Capital (NYSE:PFLT) 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)
PennantPark Floating Rate Capital Beta Related Terms
Thank you for viewing the detailed overview of PennantPark Floating Rate Capital's Beta provided by GuruFocus.com. Please click on the following links to see related term pages.
PennantPark Floating Rate Capital (PennantPark Floating Rate Capital) Business Description
PennantPark Floating Rate Capital Ltd is a closed-end, externally managed, non-diversified investment company. Its investment objectives are to generate current income and capital appreciation by investing in Floating Rate Loans and other investments made to U.S. middle-market companies. The company believes that Floating Rate Loans to U.S. middle-market companies offer attractive risk-reward to investors due to the limited amount of capital available for such companies and the potential for rising interest rates. The company generate revenue in the form of interest income on the debt securities and dividends.
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