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The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-08-06), Arrow Financial's 1-Year Sharpe Ratio is 1.86.
Arrow Financial (NAS:AROW) 1-Year Sharpe Ratio Explanation
The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. 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.
Arrow Financial 1-Year Sharpe Ratio Related Terms
AROW vs BHB, RRBI, AMBZ: 1-Year Sharpe Ratio Comparison
For the Banks - Regional subindustry, Arrow Financial's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-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.
Arrow Financial 1-Year Sharpe Ratio vs Banks Industry
For the Banks industry and Financial Services sector, Arrow Financial's 1-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where Arrow Financial's 1-Year Sharpe Ratio falls into.
The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.
Arrow Financial (AROW) has a 1-Year Sharpe Ratio of 1.86 as of Aug. 06, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Arrow Financial and its competitors.
Is Arrow Financial's 1-Year Sharpe Ratio too high?
Arrow Financial's current 1-Year Sharpe Ratio is 1.86. Overall, Arrow Financial has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arrow Financial's 1-Year Sharpe Ratio compare to BHB and RRBI?
Arrow Financial's 1-Year Sharpe Ratio of 1.86 can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for a Banks company?
A good 1-Year Sharpe Ratio depends on the Banks industry context. However, 1-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 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Arrow Financial and its competitors. Arrow Financial's current 1-Year Sharpe Ratio is 1.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arrow Financial stock overvalued right now?
Based on GuruFocus' analysis, Arrow Financial (AROW) is currently considered Modestly Overvalued. The stock's GF Value™ is $36.48, compared to a current price of $40.58 — trading 11.2% above its estimated fair value. The current 1-Year Sharpe Ratio is 1.86. Arrow Financial's overall GF Score™ is 68/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Arrow Financial (AROW), the current 1-Year Sharpe Ratio is 1.86 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 Arrow Financial (AROW) Overvalued in 2026?
Based on GuruFocus' analysis, Arrow Financial stock appears to be overvalued.
The current stock price of $40.58 is trading 11.2% above its estimated GF Value™ of $36.48.
GuruFocus considers Arrow Financial to be Modestly Overvalued.
Key valuation signals for AROW:
1-Year Sharpe Ratio: 1.86
GF Value™: $36.48 vs. price of $40.58 (11.2% above fair value)
No single metric tells the full story. See the AROW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arrow Financial Corp is a holding company. It provides various advisory and administrative services and coordinates the general policies and operations of the banks. It provides financial products, including online and mobile banking, mortgages, commercial loans, investments, and others. The company also provides lending services, including commercial and industrial lending to small and mid-sized companies; mortgage lending for residential and commercial properties; and consumer installment and home equity financing. The key source of the company's revenue is interest income, fees, commission earned through its subsidiaries.
68GF Score
Get the complete analysis for AROW
1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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