Root (ROOT) Beta : 3.73 (As of May. 02, 2024)

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What is Root Beta?

Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2024-05-02), Root's Beta is 3.73.

Root Beta Historical Data

The historical data trend for Root'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.

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Root Beta Chart

Root Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beta

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1.98

Root Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beta	Get a 7-Day Free Trial															-	-	1.54	1.98	3.73

Competitive Comparison of Root's Beta

For the Insurance - Property & Casualty subindustry, Root'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.

Root's Beta Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Root's Beta distribution charts can be found below:

* The bar in red indicates where Root's Beta falls into.

Root 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.

Root (NAS:ROOT) 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)

Root Beta Related Terms

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Root (ROOT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Root Inc (NAS:ROOT) » Definitions » Beta

Comparable Companies

Traded in Other Exchanges

N/A

Address

80 E. Rich Street, Suite 500, Columbus, OH, USA, 43215

Website

https://ir.joinroot.com

Root Inc develops and launches a direct-to-consumer personal automobile insurance and mobile technology company. The company is a direct-to-consumer personal auto insurance, renters insurance and mobile technology company. It generates revenue from the sale of auto insurance policies within the United States.

Executives

Jonathan Allison	officer: Chief Administrative Officer	ROOT, INC., 80 E. RICH STREET, SUITE 500, COLUMBUS OH 43215
Donna Dorsey	director	ROOT, INC., 80 E. RICH STREET, SUITE 500, COLUMBUS OH 43215
Mahtiyar Bonakdarpour	officer: Chief Technology Officer	80 E. RICH STREET, SUITE 500, COLUMBUS OH 43215
Meyer Malka	10 percent owner	364 UNIVERSITY AVENUE, PALO ALTO CA 94301
Bullfrog Capital, L.p.	10 percent owner	364 UNIVERSITY AVENUE, PALO ALTO CA 94301
Bullfrog Capital Gp, Ltd.	10 percent owner	364 UNIVERSITY AVENUE, PALO ALTO CA 94301
Julie Szudarek	director	80 E. RICH STREET, SUITE 500, COLUMBUS OH 43215
Robert H. Bateman	officer: Chief Financial Officer	ONE HARTFORD PLAZA, HARTFORD CT 06155
Daniel H Rosenthal	director, officer: Chief Financial Officer	C/O ROOT, INC., 80 E RICH STREET, SUITE 500, COLUMBUS OH 43215
Beth A Birnbaum	director	C/O 111 RIVER STREET, HOBOKEN NJ 07030
Lawrence A. Hilsheimer	director	425 WINTER ROAD, DELAWARE OH 43015
Hemal Shah	officer: Chief Product Officer	80 E. RICH STREET, SUITE 500, COLUMBUS OH 43215
Carvana Co.	10 percent owner	300 E. RIO SALADO PARKWAY, TEMPE AZ 85281
Carvana Group, Llc	10 percent owner	1930 W. RIO SALADO PKWY, TEMPE AZ 85281
Anirban Kundu	officer: Chief Technology Officer	80 E. RICH STREET, SUITE 500, COLUMBUS OH 43215