Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-06-30), Sumitomo Forestry Co's Beta is -0.0594.
Sumitomo Forestry Co (OTCPK:SMFRF) 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 Residential Construction subindustry, Sumitomo Forestry 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.
Sumitomo Forestry Co Beta vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Sumitomo Forestry Co's Beta distribution charts can be found below:
* The bar in red indicates where Sumitomo Forestry 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.
Sumitomo Forestry Co (SMFRF) has a Beta of -0.0594 as of Jun. 30, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Sumitomo Forestry Co and its competitors.
Is Sumitomo Forestry Co's Beta too high?
Sumitomo Forestry Co's current Beta is -0.0594. Overall, Sumitomo Forestry Co has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Forestry Co's Beta compare to DHI and PHM?
Sumitomo Forestry Co's Beta of -0.0594 can be compared against companies in the Homebuilding & Construction 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 Homebuilding & Construction company?
A good Beta depends on the Homebuilding & Construction 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 Sumitomo Forestry Co and its competitors. Sumitomo Forestry Co's current Beta is -0.0594. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Forestry Co stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Forestry Co (SMFRF) is currently considered Modestly Undervalued. The stock's GF Value™ is $12.02, compared to a current price of $8.55 — trading 28.9% below its estimated fair value. The current Beta is -0.0594. Sumitomo Forestry Co's overall GF Score™ is 87/100 with 4 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 Sumitomo Forestry Co (SMFRF), the current Beta is -0.0594 as of Jun. 30, 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 Sumitomo Forestry Co (SMFRF) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Forestry Co stock appears to be undervalued.
The current stock price of $8.55 is trading 28.9% below its estimated GF Value™ of $12.02.
GuruFocus considers Sumitomo Forestry Co to be Modestly Undervalued.
Key valuation signals for SMFRF:
Beta: -0.0594
GF Value™: $12.02 vs. price of $8.55 (28.9% below fair value)
No single metric tells the full story. See the SMFRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Forestry Co Ltd is a Japan-based company engaged in the timber, housing, and environmental businesses. The company operates through four reportable segments: Timber Building Materials Business, Housing Business, Construction and Real Estate Business, and Resources and Environment Business. The Timber Building Materials Business purchases, manufactures, and sells timber and building materials. The Housing Business handles housing construction, renovation, and real estate brokerage. The Construction and Real Estate Business develops condominiums, apartment buildings, and commercial complexes. The Resources and Environment Business focuses on renewable energy and forestry resource operations. It generates the majority of revenue from the Construction and real estate business segment.
87GF Score
Get the complete analysis for SMFRF
Beta is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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