Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-06-25), Installed Building Products's Beta is 1.9656.
Installed Building Products (NYSE:IBP) 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)
* 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 Residential Construction subindustry, Installed Building Products'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.
Installed Building Products Beta vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Installed Building Products's Beta distribution charts can be found below:
* The bar in red indicates where Installed Building Products'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.
Installed Building Products (IBP) has a Beta of 1.9656 as of Jun. 25, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Installed Building Products and its competitors.
Is Installed Building Products' Beta too high?
Installed Building Products' current Beta is 1.9656. Overall, Installed Building Products has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Installed Building Products' Beta compare to TMHC and MTH?
Installed Building Products' Beta of 1.9656 can be compared against companies in the Homebuilding & Construction 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 Homebuilding & Construction company?
A good Beta depends on the Homebuilding & Construction 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 Installed Building Products and its competitors. Installed Building Products's current Beta is 1.9656. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Installed Building Products stock overvalued right now?
Based on GuruFocus' analysis, Installed Building Products (IBP) is currently considered Fairly Valued. The stock's GF Value™ is $225.55, compared to a current price of $223.30 — trading 1% below its estimated fair value. The current Beta is 1.9656. Installed Building Products' overall GF Score™ is 96/100 with 3 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 Installed Building Products (IBP), the current Beta is 1.9656 as of Jun. 25, 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 Installed Building Products (IBP) Overvalued in 2026?
Based on GuruFocus' analysis, Installed Building Products stock appears to be undervalued.
The current stock price of $223.30 is trading 1% below its estimated GF Value™ of $225.55.
GuruFocus considers Installed Building Products to be Fairly Valued.
Key valuation signals for IBP:
Beta: 1.9656
GF Value™: $225.55 vs. price of $223.30 (1% below fair value)
No single metric tells the full story. See the IBP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Installed Building Products Inc is an insulation installer serving the residential new construction market and are also a diversified installer of complementary building products, including waterproofing, fire-stopping and fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving, mirrors and other products throughout the United States. The company installs fiberglass insulation, spray foam insulation, and cellulose insulation. The company has three operating segments consisting of Installation, Manufacturing and Distribution operations. Majority of revenue is derived from Installation segment.
96GF Score
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