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Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-07-24), Kitano Construction's Beta is 0.2645.
Kitano Construction (TSE:1866) 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 Engineering & Construction subindustry, Kitano Construction'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.
Kitano Construction Beta vs Construction Industry
For the Construction industry and Industrials sector, Kitano Construction's Beta distribution charts can be found below:
* The bar in red indicates where Kitano Construction'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.
Kitano Construction (TSE:1866) has a Beta of 0.2645 as of Jul. 24, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Kitano Construction and its competitors.
Is Kitano Construction's Beta too high?
Kitano Construction's current Beta is 0.2645. Overall, Kitano Construction has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kitano Construction's Beta compare to PWR and FIX?
Kitano Construction's Beta of 0.2645 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 Kitano Construction and its competitors. Kitano Construction's current Beta is 0.2645. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kitano Construction stock overvalued right now?
Based on GuruFocus' analysis, Kitano Construction (TSE:1866) is currently considered Modestly Overvalued. The stock's GF Value™ is 円878.18, compared to a current price of 円1,125.00 — trading 28.1% above its estimated fair value. The current Beta is 0.2645. Kitano Construction's overall GF Score™ is 65/100 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 Kitano Construction (TSE:1866), the current Beta is 0.2645 as of Jul. 24, 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 Kitano Construction (TSE:1866) Overvalued in 2026?
Based on GuruFocus' analysis, Kitano Construction stock appears to be overvalued.
The current stock price of 円1,125.00 is trading 28.1% above its estimated GF Value™ of 円878.18.
GuruFocus considers Kitano Construction to be Modestly Overvalued.
Key valuation signals for TSE:1866:
Beta: 0.2645
GF Value™: 円878.18 vs. price of 円1,125.00 (28.1% above fair value)
No single metric tells the full story. See the TSE:1866 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kitano Construction Corp provides real estate services in Japan. Its business activities include planning, designing, construction management and consulting of construction work and development of urban, regional and resort projects.
65GF Score
Get the complete analysis for TSE:1866
Beta is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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