Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2024-05-02), Cavitation Technologies's Beta is 0.87.
* 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 Cavitation Technologies's Beta
For the Specialty Industrial Machinery subindustry, Cavitation Technologies'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.
Cavitation Technologies's Beta Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Cavitation Technologies's Beta distribution charts can be found below:
* The bar in red indicates where Cavitation Technologies's Beta falls into.
Cavitation Technologies 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.
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)
Cavitation Technologies Beta Related Terms
Thank you for viewing the detailed overview of Cavitation Technologies's Beta provided by GuruFocus.com. Please click on the following links to see related term pages.
Cavitation Technologies (Cavitation Technologies) Business Description
Cavitation Technologies Inc develops, patents, and commercializes the proprietary technology for large-scale liquid processing applications. The firm has commercialized its proprietary technology for refining vegetable oils by providing domestic and foreign refining facilities with a firm's Nano Neutralization technology and cavitation systems comprising the Nano Reactor. Its technologies can be applied to several other fluid-processing industries that will benefit from increased yields, lowered processing costs, and improved quality. It has filed patent applications related to edible oil refining, renewable fuel production, both alcoholic and non-alcoholic beverage processing and enhancement, and petroleum upgrading. Its component comprises of Nano Reactor and LPN.
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