Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2024-05-15), Westport Fuel Systems's Beta is 2.28.
* 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.
Competitive Comparison of Westport Fuel Systems's Beta
For the Auto Parts subindustry, Westport Fuel 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.
Westport Fuel Systems's Beta Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Westport Fuel Systems's Beta distribution charts can be found below:
* The bar in red indicates where Westport Fuel Systems's Beta falls into.
Westport Fuel Systems Beta Calculation
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.
Westport Fuel Systems (NAS:WPRT) 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)
Westport Fuel Systems Beta Related Terms
Thank you for viewing the detailed overview of Westport Fuel Systems's Beta provided by GuruFocus.com. Please click on the following links to see related term pages.
Westport Fuel Systems (Westport Fuel Systems) Business Description
Westport Fuel Systems Inc is an organization engaged in the engineering, manufacturing, and supply of alternative fuel systems and components for transportation applications. It has three operating segments; the Original Equipment Manufacturers segment-design, manufacture, and sell alternative fuel systems, components and electronics, and related engineering services, to OEMs that serve light-duty, medium-duty, and heavy-duty customers, the Independent Aftermarket segment includes IAM products, conversion kits, and components allow for the conversion of vehicles after being sold to the end-user through a network of dealers and installers, and Corporate includes public company activities, corporate oversight, financing, and capital allocation.
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