Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-06-26), Alfa Financial Software Holdings's Beta is 0.8792.
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)
Alfa Financial Software Holdings Beta Related Terms
Alfa Financial Software Holdings Beta Historical Data
* 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 Software - Application subindustry, Alfa Financial Software Holdings'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.
Alfa Financial Software Holdings Beta vs Software Industry
For the Software industry and Technology sector, Alfa Financial Software Holdings's Beta distribution charts can be found below:
* The bar in red indicates where Alfa Financial Software Holdings'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.
Alfa Financial Software Holdings (LSE:ALFA) has a Beta of 0.8792 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 Alfa Financial Software Holdings and its competitors.
Is Alfa Financial Software Holdings' Beta too high?
Alfa Financial Software Holdings' current Beta is 0.8792. Overall, Alfa Financial Software Holdings has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alfa Financial Software Holdings' Beta compare to CRM and SHOP?
Alfa Financial Software Holdings' Beta of 0.8792 can be compared against companies in the Software 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 Software company?
A good Beta depends on the Software 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 Alfa Financial Software Holdings and its competitors. Alfa Financial Software Holdings's current Beta is 0.8792. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alfa Financial Software Holdings stock overvalued right now?
Based on GuruFocus' analysis, Alfa Financial Software Holdings (LSE:ALFA) is currently considered Significantly Undervalued. The stock's GF Value™ is £2.38, compared to a current price of £1.51 — trading 36.4% below its estimated fair value. The current Beta is 0.8792. Alfa Financial Software Holdings' overall GF Score™ is 82/100. 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 Alfa Financial Software Holdings (LSE:ALFA), the current Beta is 0.8792 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 Alfa Financial Software Holdings (LSE:ALFA) Overvalued in 2026?
Based on GuruFocus' analysis, Alfa Financial Software Holdings stock appears to be undervalued.
The current stock price of £1.51 is trading 36.4% below its estimated GF Value™ of £2.38.
GuruFocus considers Alfa Financial Software Holdings to be Significantly Undervalued.
Key valuation signals for LSE:ALFA:
Beta: 0.8792
GF Value™: £2.38 vs. price of £1.51 (36.4% below fair value)
No single metric tells the full story. See the LSE:ALFA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alfa Financial Software Holdings Business Description
Alfa Financial Software Holdings PLC is principally engaged in the provision of software and software-related services to the auto and equipment finance industry. Alfa Systems, its technology platform, supports both retail and corporate business for auto, equipment, wholesale, and dealer finance on a multijurisdictional basis, including leases/loans, originations, and servicing. The company has one operating and reporting segment, being the sale of software and related services. It generates the majority of its revenue from the EMEA and Americas and the rest from other regions.
82GF Score
Get the complete analysis for LSE:ALFA
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