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Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-08-06), Huadong Medicine Co's Beta is 1.0391.
Huadong Medicine Co (SZSE:000963) 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 Drug Manufacturers - Specialty & Generic subindustry, Huadong Medicine 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.
Huadong Medicine Co Beta vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Huadong Medicine Co's Beta distribution charts can be found below:
* The bar in red indicates where Huadong Medicine 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.
Huadong Medicine Co (SZSE:000963) has a Beta of 1.0391 as of Aug. 06, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Huadong Medicine Co and its competitors.
Is Huadong Medicine Co's Beta too high?
Huadong Medicine Co's current Beta is 1.0391. Overall, Huadong Medicine Co has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Huadong Medicine Co's Beta compare to ZTS?
Huadong Medicine Co's Beta of 1.0391 can be compared against companies in the Drug Manufacturers 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 Drug Manufacturers company?
A good Beta depends on the Drug Manufacturers 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 Huadong Medicine Co and its competitors. Huadong Medicine Co's current Beta is 1.0391. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Huadong Medicine Co stock overvalued right now?
Based on GuruFocus' analysis, Huadong Medicine Co (SZSE:000963) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥39.74, compared to a current price of ¥27.82 — trading 30% below its estimated fair value. The current Beta is 1.0391. Huadong Medicine Co's overall GF Score™ is 86/100 with 2 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 Huadong Medicine Co (SZSE:000963), the current Beta is 1.0391 as of Aug. 06, 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 Huadong Medicine Co (SZSE:000963) Overvalued in 2026?
Based on GuruFocus' analysis, Huadong Medicine Co stock appears to be undervalued.
The current stock price of ¥27.82 is trading 30% below its estimated GF Value™ of ¥39.74.
GuruFocus considers Huadong Medicine Co to be Significantly Undervalued.
Key valuation signals for SZSE:000963:
Beta: 1.0391
GF Value™: ¥39.74 vs. price of ¥27.82 (30% below fair value)
No single metric tells the full story. See the SZSE:000963 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Huadong Medicine Co Ltd is engaged in the production and sales of antibiotics, proprietary Chinese medicine, chemical synthetic medicine, and genetic engineering drug products. The company mainly operates its business through three segments. The Manufacturing Business segment is engaged in the research and development, production, and marketing of specialized medicines, medicines for chronic diseases, as well as special medicines. The Commercial Business segment is engaged in the sales of medicines, medical devices, ginseng, and antler pieces. The International Medical Beauty Business segment is engaged in the production and sales of regeneration products, hyaluronic acids, and botulinum toxin products.
86GF Score
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