Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-06-24), Royce Micro-Cap Trust's Beta is -0.0929.
Royce Micro-Cap Trust (NYSE:RMT) 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 Asset Management subindustry, Royce Micro-Cap Trust'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.
Royce Micro-Cap Trust Beta vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Royce Micro-Cap Trust's Beta distribution charts can be found below:
* The bar in red indicates where Royce Micro-Cap Trust'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.
Royce Micro-Cap Trust (RMT) has a Beta of -0.0929 as of Jun. 24, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Royce Micro-Cap Trust and its competitors.
Is Royce Micro-Cap Trust's Beta too high?
Royce Micro-Cap Trust's current Beta is -0.0929. Overall, Royce Micro-Cap Trust has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royce Micro-Cap Trust's Beta compare to CGBD and NIE?
Royce Micro-Cap Trust's Beta of -0.0929 can be compared against companies in the Asset Management 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 Asset Management company?
A good Beta depends on the Asset Management 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 Royce Micro-Cap Trust and its competitors. Royce Micro-Cap Trust's current Beta is -0.0929. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royce Micro-Cap Trust stock overvalued right now?
Based on GuruFocus' analysis, Royce Micro-Cap Trust (RMT) is currently considered Significantly Overvalued. The stock's GF Value™ is $10.44, compared to a current price of $14.05 — trading 34.6% above its estimated fair value. The current Beta is -0.0929. Royce Micro-Cap Trust's overall GF Score™ is 40/100 with 8 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 Royce Micro-Cap Trust (RMT), the current Beta is -0.0929 as of Jun. 24, 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 Royce Micro-Cap Trust (RMT) Overvalued in 2026?
Based on GuruFocus' analysis, Royce Micro-Cap Trust stock appears to be overvalued.
The current stock price of $14.05 is trading 34.6% above its estimated GF Value™ of $10.44.
GuruFocus considers Royce Micro-Cap Trust to be Significantly Overvalued.
Key valuation signals for RMT:
Beta: -0.0929
GF Value™: $10.44 vs. price of $14.05 (34.6% above fair value)
No single metric tells the full story. See the RMT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royce Micro-Cap Trust Inc is a diversified closed-end investment company. The company is engaged in investing in micro-cap securities. It invests in the consumer discretionary sector, including diversified consumer services, hotels, household durables, leisure products, and luxury goods. Consumer staples sector, including beverages, food, and staples retailing, food products, and personal products, Energy sector, including energy equipment and services, and oil, gas, and consumable fuels. The company also invests in other sectors, including healthcare, financials, industrials, IT, telecommunications, and materials.
40GF Score
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