Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-06-26), Robinhood Markets's Beta is 1.3565.
Robinhood Markets (FRA:7KY) 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)
Robinhood Markets Beta Related Terms
Robinhood Markets Beta Historical Data
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The historical data trend for Robinhood Markets'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 Capital Markets subindustry, Robinhood Markets'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.
Robinhood Markets Beta vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Robinhood Markets's Beta distribution charts can be found below:
* The bar in red indicates where Robinhood Markets'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.
Robinhood Markets (FRA:7KY) has a Beta of 1.3565 as of Jun. 26, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Robinhood Markets and its competitors.
Is Robinhood Markets' Beta too high?
Robinhood Markets' current Beta is 1.3565. Overall, Robinhood Markets has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Robinhood Markets' Beta compare to IBKR and CRCL?
Robinhood Markets' Beta of 1.3565 can be compared against companies in the Capital Markets 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 a Capital Markets company?
A good Beta depends on the Capital Markets 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 Robinhood Markets and its competitors. Robinhood Markets's current Beta is 1.3565. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Robinhood Markets stock overvalued right now?
Based on GuruFocus' analysis, Robinhood Markets (FRA:7KY) is currently considered Significantly Overvalued. The stock's GF Value™ is €54.41, compared to a current price of €81.78 — trading 50.3% above its estimated fair value. The current Beta is 1.3565. Robinhood Markets' overall GF Score™ is 72/100 with 6 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 Robinhood Markets (FRA:7KY), the current Beta is 1.3565 as of Jun. 26, 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 Robinhood Markets (FRA:7KY) Overvalued in 2026?
Based on GuruFocus' analysis, Robinhood Markets stock appears to be overvalued.
The current stock price of €81.78 is trading 50.3% above its estimated GF Value™ of €54.41.
GuruFocus considers Robinhood Markets to be Significantly Overvalued.
Key valuation signals for FRA:7KY:
Beta: 1.3565
GF Value™: €54.41 vs. price of €81.78 (50.3% above fair value)
No single metric tells the full story. See the FRA:7KY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Robinhood is a diversified financial services provider best known for its retail brokerage platform, which historically caters to a young, risk-seeking clientele that trades heavily on margin and in higher-risk asset classes like options, futures, cryptocurrencies, and more recently, in prediction markets. As those customers' financial needs have begun to mature, Robinhood has rolled out a suite of more conventional products, from retirement accounts to high-yield cash sweep accounts to nascent advisory services (Robinhood Strategies). With $322 billion in customer assets and 27 million active accounts at year-end 2025, the firm has emerged as a significant player in the large, quickly growing US brokerage market.
72GF Score
Get the complete analysis for FRA:7KY
Beta is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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