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Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-07-19), Advanced Drainage Systems's Beta is 1.4778.
Advanced Drainage Systems (STU:6DA) 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 Building Products & Equipment subindustry, Advanced Drainage Systems'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.
Advanced Drainage Systems Beta vs Construction Industry
For the Construction industry and Industrials sector, Advanced Drainage Systems's Beta distribution charts can be found below:
* The bar in red indicates where Advanced Drainage Systems'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.
Advanced Drainage Systems (STU:6DA) has a Beta of 1.4778 as of Jul. 19, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Advanced Drainage Systems and its competitors.
Is Advanced Drainage Systems' Beta too high?
Advanced Drainage Systems' current Beta is 1.4778. Overall, Advanced Drainage Systems has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Advanced Drainage Systems' Beta compare to SPXC and OC?
Advanced Drainage Systems' Beta of 1.4778 can be compared against companies in the 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 Construction company?
A good Beta depends on the 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 Advanced Drainage Systems and its competitors. Advanced Drainage Systems's current Beta is 1.4778. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advanced Drainage Systems stock overvalued right now?
Based on GuruFocus' analysis, Advanced Drainage Systems (STU:6DA) is currently considered Fairly Valued. The stock's GF Value™ is €128.73, compared to a current price of €128.90 — trading 0.1% above its estimated fair value. The current Beta is 1.4778. Advanced Drainage Systems' overall GF Score™ is 86/100 with 3 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 Advanced Drainage Systems (STU:6DA), the current Beta is 1.4778 as of Jul. 19, 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 Advanced Drainage Systems (STU:6DA) Overvalued in 2026?
Based on GuruFocus' analysis, Advanced Drainage Systems stock appears to be overvalued.
The current stock price of €128.90 is trading 0.1% above its estimated GF Value™ of €128.73.
GuruFocus considers Advanced Drainage Systems to be Fairly Valued.
Key valuation signals for STU:6DA:
Beta: 1.4778
GF Value™: €128.73 vs. price of €128.90 (0.1% above fair value)
No single metric tells the full story. See the STU:6DA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advanced Drainage Systems Inc designs, manufactures and markets water management solutions in the stormwater and onsite wastewater industries, providing superior drainage solutions for use in the construction and agriculture markets. The company's products are used across a broad range of end markets and applications, including non-residential, residential, infrastructure and agriculture applications. It has two reportable segments: Stormwater and Wastewater. It derives the majority of revenue from the Stormwater segment, which manufactures and markets thermoplastic corrugated pipe and complementary products, including single wall pipe, N-12 HDPE pipe, polypropylene pipe, StormTech, Nyloplast, Inserta Tee, water quality filters and structures, and NDS channel drains, and access boxes.
86GF Score
Get the complete analysis for STU:6DA
Beta is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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