The 3-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past three years. As of today (2026-06-24), Nelco's 3-Year Sharpe Ratio is 0.18.
Nelco (NSE:NELCO) 3-Year Sharpe Ratio Explanation
The 3-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past three years. It is calculated as the annualized result of the average three-year monthly excess returns divided by its standard deviation in the three-year period. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.
Nelco 3-Year Sharpe Ratio Related Terms
NSE:NELCO vs CSCO, CIEN, MSI: 3-Year Sharpe Ratio Comparison
For the Communication Equipment subindustry, Nelco's 3-Year Sharpe Ratio, along with its competitors' market caps and 3-Year Sharpe Ratio 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.
Nelco 3-Year Sharpe Ratio vs Hardware Industry
For the Hardware industry and Technology sector, Nelco's 3-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where Nelco's 3-Year Sharpe Ratio falls into.
The 3-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset in the last three years. A stock / portfolio's 3-Year Sharpe Ratio can be calculated by dividing the difference between the three-year average monthly returns of the investment and the risk-free rate, by the standard deviation of the investment returns over the past three years.
Nelco (NSE:NELCO) has a 3-Year Sharpe Ratio of 0.18 as of Jun. 24, 2026. 3-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past three years. View historical data for Nelco and its competitors.
Is Nelco's 3-Year Sharpe Ratio too high?
Nelco's current 3-Year Sharpe Ratio is 0.18. Overall, Nelco has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nelco's 3-Year Sharpe Ratio compare to CSCO and CIEN?
Nelco's 3-Year Sharpe Ratio of 0.18 can be compared against companies in the Hardware industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year Sharpe Ratio for a Hardware company?
A good 3-Year Sharpe Ratio depends on the Hardware industry context. However, 3-Year Sharpe Ratio 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 3-Year Sharpe Ratio mean?
A high 3-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 3-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past three years. View historical data for Nelco and its competitors. Nelco's current 3-Year Sharpe Ratio is 0.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nelco stock overvalued right now?
Based on GuruFocus' analysis, Nelco (NSE:NELCO) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹791.52, compared to a current price of ₹880.75 — trading 11.3% above its estimated fair value. The current 3-Year Sharpe Ratio is 0.18. Nelco's overall GF Score™ is 72/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year Sharpe Ratio calculated?
3-Year Sharpe Ratio is calculated from a company's financial statements. For Nelco (NSE:NELCO), the current 3-Year Sharpe Ratio is 0.18 as of Jun. 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 Nelco (NSE:NELCO) Overvalued in 2026?
Based on GuruFocus' analysis, Nelco stock appears to be overvalued.
The current stock price of ₹880.75 is trading 11.3% above its estimated GF Value™ of ₹791.52.
GuruFocus considers Nelco to be Modestly Overvalued.
Key valuation signals for NSE:NELCO:
3-Year Sharpe Ratio: 0.18
GF Value™: ₹791.52 vs. price of ₹880.75 (11.3% above fair value)
No single metric tells the full story. See the NSE:NELCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nelco Ltd is in the business of providing domestic satellite communication services to close user group (CUG) networks via Satellite System on non-exclusive basis within the territorial boundary of India under the VSAT, ISP and other Licenses and authorisation granted by Department of Telecommunications, Government of India. The company operates in a single reportable segment, namely Network Systems, comprising Satellite Communication (Satcom) Services, which include equipment sales, maintenance, and other allied services. The group earns revenue from providing Satellite communication connectivity systems and solutions through sale of goods, providing installation and annual maintenance services, renting of goods, Integrated Security & Surveillance services.
72GF Score
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