Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-06-28), Shanghai Material Trading Co's Beta is 1.0291.
Shanghai Material Trading Co (SHSE:600822) 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 Conglomerates subindustry, Shanghai Material Trading Co'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.
Shanghai Material Trading Co Beta vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Shanghai Material Trading Co's Beta distribution charts can be found below:
* The bar in red indicates where Shanghai Material Trading Co'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.
Shanghai Material Trading Co (SHSE:600822) has a Beta of 1.0291 as of Jun. 28, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Shanghai Material Trading Co and its competitors.
Is Shanghai Material Trading Co's Beta too high?
Shanghai Material Trading Co's current Beta is 1.0291. Overall, Shanghai Material Trading Co has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Material Trading Co's Beta compare to HON and MMM?
Shanghai Material Trading Co's Beta of 1.0291 can be compared against companies in the Conglomerates 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 a Conglomerates company?
A good Beta depends on the Conglomerates 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 Shanghai Material Trading Co and its competitors. Shanghai Material Trading Co's current Beta is 1.0291. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Material Trading Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Material Trading Co (SHSE:600822) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥5.92, compared to a current price of ¥7.77 — trading 31.3% above its estimated fair value. The current Beta is 1.0291. Shanghai Material Trading Co's overall GF Score™ is 55/100 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 Shanghai Material Trading Co (SHSE:600822), the current Beta is 1.0291 as of Jun. 28, 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 Shanghai Material Trading Co (SHSE:600822) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Material Trading Co stock appears to be overvalued.
The current stock price of ¥7.77 is trading 31.3% above its estimated GF Value™ of ¥5.92.
GuruFocus considers Shanghai Material Trading Co to be Significantly Overvalued.
Key valuation signals for SHSE:600822:
Beta: 1.0291
GF Value™: ¥5.92 vs. price of ¥7.77 (31.3% above fair value)
No single metric tells the full story. See the SHSE:600822 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Material Trading Co Ltd is principally engaged in the trading of metal, oil products and automobiles. The company operates its businesses in domestic and overseas markets. Its scopr of business include metal materials, mineral products, light chemical raw materials, building materials, wood, automobiles and accessories, mechanical and electrical equipment, fuel, hardware and electricity, textile Import and export trade business; warehousing, information consulting and technical services.
55GF Score
Get the complete analysis for SHSE:600822
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