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# Computer Programs and Systems Beta

: \$0.86 (As of Today)
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Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2020-11-27), Computer Programs and Systems's Beta is 0.86.

## Computer Programs and Systems Beta Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

 Computer Programs and Systems Annual Data Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Beta 0.26 -0.37 -0.09 0.15 1.11

 Computer Programs and Systems Quarterly Data Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Beta 0.96 1.11 0.94 0.82 0.86

Competitive Comparison
* 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.

Computer Programs and Systems Beta Distribution

* The bar in red indicates where Computer Programs and Systems's Beta falls into.

## Computer Programs and Systems 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.

Computer Programs and Systems  (NAS:CPSI) 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)