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Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-08-06), Rocket Lab's Beta is 4.8132.
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)
Rocket Lab Beta Related Terms
Rocket Lab Beta Historical Data
* Premium members only.
The historical data trend for Rocket Lab'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 Aerospace & Defense subindustry, Rocket Lab'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.
Rocket Lab Beta vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rocket Lab's Beta distribution charts can be found below:
* The bar in red indicates where Rocket Lab'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.
Rocket Lab (RKLB) has a Beta of 4.8132 as of Aug. 06, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Rocket Lab and its competitors.
Is Rocket Lab's Beta too high?
Rocket Lab's current Beta is 4.8132. Overall, Rocket Lab has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rocket Lab's Beta compare to AXON and HEI.A?
Rocket Lab's Beta of 4.8132 can be compared against companies in the Aerospace & Defense 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 an Aerospace & Defense company?
A good Beta depends on the Aerospace & Defense 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 Rocket Lab and its competitors. Rocket Lab's current Beta is 4.8132. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rocket Lab stock overvalued right now?
Based on GuruFocus' analysis, Rocket Lab (RKLB) is currently considered Significantly Overvalued. The stock's GF Value™ is $27.55, compared to a current price of $74.82 — trading 171.6% above its estimated fair value. The current Beta is 4.8132. Rocket Lab's overall GF Score™ is 71/100 with 1 warning sign 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 Rocket Lab (RKLB), the current Beta is 4.8132 as of Aug. 06, 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 Rocket Lab (RKLB) Overvalued in 2026?
Based on GuruFocus' analysis, Rocket Lab stock appears to be overvalued.
The current stock price of $74.82 is trading 171.6% above its estimated GF Value™ of $27.55.
GuruFocus considers Rocket Lab to be Significantly Overvalued.
Key valuation signals for RKLB:
Beta: 4.8132
GF Value™: $27.55 vs. price of $74.82 (171.6% above fair value)
No single metric tells the full story. See the RKLB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rocket Lab Corp is engaged in space, building rockets, and spacecraft. It provides end-to-end mission services that provide frequent and reliable access to space for civil, defense, and commercial markets. It designs and manufactures the Electron and Neutron launch vehicles and Photon satellite platform. Rocket Lab's Electron launch vehicle has delivered multiple satellites to orbit for private and public sector organizations, enabling operations in national security, scientific research, space debris mitigation, Earth observation, climate monitoring, and communications. The business operates in two segments Launch Services and Space Systems. Geographically it serves Japan, and rest of the world and earns key revenue from the United States.
71GF Score
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Beta is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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