Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-06-24), Capital Power's Beta is 0.1565.
Capital Power (FRA:2CP) 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)
Capital Power Beta Related Terms
Capital Power Beta Historical Data
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The historical data trend for Capital Power'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 Utilities - Independent Power Producers subindustry, Capital Power'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.
Capital Power Beta vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Capital Power's Beta distribution charts can be found below:
* The bar in red indicates where Capital Power's Beta falls into.
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.
Capital Power (FRA:2CP) has a Beta of 0.1565 as of Jun. 24, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Capital Power and its competitors.
Is Capital Power's Beta too high?
Capital Power's current Beta is 0.1565. Overall, Capital Power has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Capital Power's Beta compare to CEG and VST?
Capital Power's Beta of 0.1565 can be compared against companies in the Utilities - Independent Power Producers industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beta for an Utilities - Independent Power Producers company?
A good Beta depends on the Utilities - Independent Power Producers industry context. However, Beta should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beta mean?
A high Beta can signal that a stock is expensive relative to its fundamentals. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Capital Power and its competitors. Capital Power's current Beta is 0.1565. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Capital Power stock overvalued right now?
Based on GuruFocus' analysis, Capital Power (FRA:2CP) is currently considered Significantly Overvalued. The stock's GF Value™ is €24.77, compared to a current price of €46.00 — trading 85.7% above its estimated fair value. The current Beta is 0.1565. Capital Power's overall GF Score™ is 70/100 with 15 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beta calculated?
Beta is calculated from a company's financial statements. For Capital Power (FRA:2CP), the current Beta is 0.1565 as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Capital Power (FRA:2CP) Overvalued in 2026?
Based on GuruFocus' analysis, Capital Power stock appears to be overvalued.
The current stock price of €46.00 is trading 85.7% above its estimated GF Value™ of €24.77.
GuruFocus considers Capital Power to be Significantly Overvalued.
Key valuation signals for FRA:2CP:
Beta: 0.1565
GF Value™: €24.77 vs. price of €46.00 (85.7% above fair value)
No single metric tells the full story. See the FRA:2CP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Capital Power Corp is a North American power producer whose principal activities are developing, acquiring, and operating power plants. Through its subsidiary, Capital Power owns and operates a portfolio of natural gas, coal, wind, solar, and solid fuel energy generating facilities. These are located throughout Western and Central Canada and the U.S. Capital Power's natural gas and coal facilities, specifically its Genesee and Shepard sites, account for its electric capacity and cash flow production. The company generates the vast majority of its revenue from sale of electricity and natural gas. The company's customers include a variety of industrial and commercial consumers, independent transmission system operators, and government-owned entities.
70GF Score
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