Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
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 (2026-09-11), Al Arafah Islami Bank's 1-Year Sharpe Ratio is 0.06.
Al Arafah Islami Bank (DHA:ALARABANK) 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.
Al Arafah Islami Bank 1-Year Sharpe Ratio Related Terms
Al Arafah Islami Bank 1-Year Sharpe Ratio Competitor Comparison
For the Banks - Regional subindustry, Al Arafah Islami Bank'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.
Al Arafah Islami Bank 1-Year Sharpe Ratio vs Banks Industry
For the Banks industry and Financial Services sector, Al Arafah Islami Bank's 1-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where Al Arafah Islami Bank's 1-Year Sharpe Ratio falls into.
Al Arafah Islami Bank 1-Year Sharpe Ratio Calculation
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.
Al Arafah Islami Bank (DHA:ALARABANK) has a 1-Year Sharpe Ratio of 0.06 as of Sep. 11, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Al Arafah Islami Bank and its competitors.
Is Al Arafah Islami Bank's 1-Year Sharpe Ratio too high?
Al Arafah Islami Bank's current 1-Year Sharpe Ratio is 0.06. Overall, Al Arafah Islami Bank has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Al Arafah Islami Bank's 1-Year Sharpe Ratio compare to competitors?
Al Arafah Islami Bank's 1-Year Sharpe Ratio of 0.06 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 Al Arafah Islami Bank and its competitors. Al Arafah Islami Bank's current 1-Year Sharpe Ratio is 0.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al Arafah Islami Bank stock overvalued right now?
Based on GuruFocus' analysis, Al Arafah Islami Bank (DHA:ALARABANK) is currently considered Modestly Undervalued. The stock's GF Value™ is BDT17.29, compared to a current price of BDT15.40 — trading 10.9% below its estimated fair value. The current 1-Year Sharpe Ratio is 0.06. Al Arafah Islami Bank's overall GF Score™ is 72/100 with 4 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 Al Arafah Islami Bank (DHA:ALARABANK), the current 1-Year Sharpe Ratio is 0.06 as of Sep. 11, 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 Al Arafah Islami Bank (DHA:ALARABANK) Overvalued in 2026?
Based on GuruFocus' analysis, Al Arafah Islami Bank stock appears to be undervalued.
The current stock price of BDT15.40 is trading 10.9% below its estimated GF Value™ of BDT17.29.
GuruFocus considers Al Arafah Islami Bank to be Modestly Undervalued.
Key valuation signals for DHA:ALARABANK:
1-Year Sharpe Ratio: 0.06
GF Value™: BDT17.29 vs. price of BDT15.40 (10.9% below fair value)
No single metric tells the full story. See the DHA:ALARABANK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al Arafah Islami Bank PLC is a Bangladesh-based company engaged in providing commercial banking, consumer banking, trade finance, and related custody and clearing services. Its deposit products include current, saving, term, and short notice deposits; and marriage savings investment schemes, among others. The principal activities of the Bank are to provide a comprehensive range of financial services including commercial banking, consumer banking, trade finance and other related custody and clearing services to the customers. Geographically, it operates only in Bangladesh. It serves Agriculture; Construction; Power, Gas, Water and Sanitary Services; Transport and communication; Trade services; Storage; Professional & Miscellaneous services and other sectors.
72GF Score
Get the complete analysis for DHA:ALARABANK
1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
DHA:ALARABANK has been successfully added to your 
