DRCT (Direct Digital Holdings) 1-Year Sharpe Ratio: -3.45 (As of Jul. 19, 2026)

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DRCT Direct Digital Holdings Inc DRCT
43 GF Score
Price $2.53
GF Value $20.30
Valuation Possible Value Trap
! 6 Warning Signs
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What is Direct Digital Holdings 1-Year Sharpe Ratio?

Direct Digital Holdings DRCT +6.04% 43 1-Year Sharpe Ratio is -3.45 as of Jul. 19, 2026. GuruFocus rates DRCT with a GF Score™ of 43/100 and a GF Value™ of $20.30 (Possible Value Trap). The stock has 6 warning signs investors should review.

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 (2026-07-19), Direct Digital Holdings's 1-Year Sharpe Ratio is -3.45.

Direct Digital Holdings  (NAS:DRCT) 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.

Direct Digital Holdings 1-Year Sharpe Ratio Related Terms

DRCT vs HAO, DBMM, CNET: 1-Year Sharpe Ratio Comparison

For the Advertising Agencies subindustry, Direct Digital Holdings'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.

Direct Digital Holdings 1-Year Sharpe Ratio vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Direct Digital Holdings's 1-Year Sharpe Ratio distribution charts can be found below:

* The bar in red indicates where Direct Digital Holdings's 1-Year Sharpe Ratio falls into.


DRCT
43GF Score
Direct Digital Holdings Inc DRCT
1-Year Sharpe Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Direct Digital Holdings 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.

Frequently Asked Questions Learn more about 1-Year Sharpe Ratio →
What does a 1-Year Sharpe Ratio of -3.45 mean?
Direct Digital Holdings (DRCT) has a 1-Year Sharpe Ratio of -3.45 as of Jul. 19, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Direct Digital Holdings and its competitors.
Is Direct Digital Holdings' 1-Year Sharpe Ratio too high?
Direct Digital Holdings' current 1-Year Sharpe Ratio is -3.45. Overall, Direct Digital Holdings has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Direct Digital Holdings' 1-Year Sharpe Ratio compare to HAO and DBMM?
Direct Digital Holdings' 1-Year Sharpe Ratio of -3.45 can be compared against companies in the Media - Diversified 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 Media - Diversified company?
A good 1-Year Sharpe Ratio depends on the Media - Diversified 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 Direct Digital Holdings and its competitors. Direct Digital Holdings's current 1-Year Sharpe Ratio is -3.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Direct Digital Holdings stock overvalued right now?
Based on GuruFocus' analysis, Direct Digital Holdings (DRCT) is currently considered Possible Value Trap. The stock's GF Value™ is $20.30, compared to a current price of $2.53 — trading 87.5% below its estimated fair value. The current 1-Year Sharpe Ratio is -3.45. Direct Digital Holdings' overall GF Score™ is 43/100 with 6 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 Direct Digital Holdings (DRCT), the current 1-Year Sharpe Ratio is -3.45 as of Jul. 19, 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 Direct Digital Holdings (DRCT) Overvalued in 2026?

Based on GuruFocus' analysis, Direct Digital Holdings stock appears to be undervalued. The current stock price of $2.53 is trading 87.5% below its estimated GF Value™ of $20.30. GuruFocus considers Direct Digital Holdings to be Possible Value Trap.

Key valuation signals for DRCT:

  • 1-Year Sharpe Ratio: -3.45
  • GF Value™: $20.30 vs. price of $2.53 (87.5% below fair value)
  • GF Score™: 43/100 with 6 warning signs

No single metric tells the full story. See the DRCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Direct Digital Holdings Business Description

Address 1177 West Loop South, Suite 1310, Houston, TX, USA, 77027
Direct Digital Holdings Inc is an end-to-end, full-service programmatic advertising platform focused on providing advertising technology, data-driven campaign optimization, and other solutions to underserved and less efficient markets on both the buy-side and sell-side of the digital advertising ecosystem. The company operates two reportable segments: sell-side advertising, which includes the results of Colossus Media, and buy-side advertising, which includes the results of Orange 142 and Huddled Masses. All of the company's revenues are attributed to the United States.
43GF Score

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1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$2.53
Price
$20.30
GF Value