Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2024-04-29), NexPoint Real Estate Finance's Beta is 1.22.
* 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.
Competitive Comparison of NexPoint Real Estate Finance's Beta
For the REIT - Mortgage subindustry, NexPoint Real Estate Finance'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.
NexPoint Real Estate Finance's Beta Distribution in the REITs Industry
For the REITs industry and Real Estate sector, NexPoint Real Estate Finance's Beta distribution charts can be found below:
* The bar in red indicates where NexPoint Real Estate Finance's Beta falls into.
NexPoint Real Estate Finance 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.
NexPoint Real Estate Finance (NYSE:NREF) 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)
NexPoint Real Estate Finance Beta Related Terms
Thank you for viewing the detailed overview of NexPoint Real Estate Finance's Beta provided by GuruFocus.com. Please click on the following links to see related term pages.
NexPoint Real Estate Finance (NexPoint Real Estate Finance) Business Description
NexPoint Real Estate Finance Inc is a real estate investment trust. It provides structured financing solutions by investing in mid-sized multifamily, storage and select-service, and extended-stay hospitality properties. Its investment objective is to generate attractive, risk-adjusted returns for stockholders over the long term.
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