Red Violet (FRA:2KH) 1-Year Sharpe Ratio: 0.84 (As of Aug. 23, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
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.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
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.

FRA:2KH Red Violet Inc FRA:2KH
68 GF Score
Price €58.00
GF Value €39.88
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Red Violet 1-Year Sharpe Ratio?

Red Violet FRA:2KH -0.85% 68 1-Year Sharpe Ratio is 0.84 as of Aug. 23, 2026. GuruFocus rates FRA:2KH with a GF Score™ of 68/100 and a GF Value™ of €39.88 (Significantly Overvalued). The stock has 4 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 (2026-08-23), Red Violet's 1-Year Sharpe Ratio is 0.84.

Red Violet  (FRA:2KH) 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.

Red Violet 1-Year Sharpe Ratio Related Terms

FRA:2KH vs GTM, DJCO, MITK: 1-Year Sharpe Ratio Comparison

For the Software - Application subindustry, Red Violet'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.

Red Violet 1-Year Sharpe Ratio vs Software Industry

For the Software industry and Technology sector, Red Violet's 1-Year Sharpe Ratio distribution charts can be found below:

* The bar in red indicates where Red Violet's 1-Year Sharpe Ratio falls into.


FRA:2KH
68GF Score
Red Violet Inc FRA:2KH
1-Year Sharpe Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Red Violet 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 0.84 mean?
Red Violet (FRA:2KH) has a 1-Year Sharpe Ratio of 0.84 as of Aug. 23, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Red Violet and its competitors.
Is Red Violet's 1-Year Sharpe Ratio too high?
Red Violet's current 1-Year Sharpe Ratio is 0.84. Overall, Red Violet has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Red Violet's 1-Year Sharpe Ratio compare to GTM and DJCO?
Red Violet's 1-Year Sharpe Ratio of 0.84 can be compared against companies in the Software 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 Software company?
A good 1-Year Sharpe Ratio depends on the Software 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 Red Violet and its competitors. Red Violet's current 1-Year Sharpe Ratio is 0.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Red Violet stock overvalued right now?
Based on GuruFocus' analysis, Red Violet (FRA:2KH) is currently considered Significantly Overvalued. The stock's GF Value™ is €39.88, compared to a current price of €58.00 — trading 45.4% above its estimated fair value. The current 1-Year Sharpe Ratio is 0.84. Red Violet's overall GF Score™ is 68/100 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 Red Violet (FRA:2KH), the current 1-Year Sharpe Ratio is 0.84 as of Aug. 23, 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 Red Violet (FRA:2KH) Overvalued in 2026?

Based on GuruFocus' analysis, Red Violet stock appears to be overvalued. The current stock price of €58.00 is trading 45.4% above its estimated GF Value™ of €39.88. GuruFocus considers Red Violet to be Significantly Overvalued.

Key valuation signals for FRA:2KH:

  • 1-Year Sharpe Ratio: 0.84
  • GF Value™: €39.88 vs. price of €58.00 (45.4% above fair value)
  • GF Score™: 68/100 with 4 warning signs

No single metric tells the full story. See the FRA:2KH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Red Violet Business Description

Other Exchanges RDVT:USA
Address 2650 North Military Trail, Suite 300, Boca Raton, FL, USA, 33431
Red Violet Inc builds proprietary technologies and applies analytical capabilities to deliver identity intelligence. The company's solutions enable the real-time identification and location of people, businesses, assets, and their interrelationships. These solutions are used for purposes including identity verification, risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. Its cloud-native, AI-enabled identity intelligence platform, CORE, is purpose-built for the enterprise, yet flexible enough for organizations of all sizes, bringing clarity to massive datasets by transforming data into intelligence. The company generates substantially all of its revenue from licensing its solutions.
68GF Score

Get the complete analysis for FRA:2KH

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

€58.00
Price
€39.88
GF Value