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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 (2026-08-04), Sumitomo Chemical Co's 1-Year Sharpe Ratio is 0.88.
Sumitomo Chemical Co (FRA:SMM) 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.
Sumitomo Chemical Co 1-Year Sharpe Ratio Related Terms
FRA:SMM vs DOW: 1-Year Sharpe Ratio Comparison
For the Chemicals subindustry, Sumitomo Chemical Co'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.
Sumitomo Chemical Co 1-Year Sharpe Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sumitomo Chemical Co's 1-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where Sumitomo Chemical Co's 1-Year Sharpe Ratio falls into.
Sumitomo Chemical Co 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.
Sumitomo Chemical Co (FRA:SMM) has a 1-Year Sharpe Ratio of 0.88 as of Aug. 04, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Sumitomo Chemical Co and its competitors.
Is Sumitomo Chemical Co's 1-Year Sharpe Ratio too high?
Sumitomo Chemical Co's current 1-Year Sharpe Ratio is 0.88. Overall, Sumitomo Chemical Co has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Chemical Co's 1-Year Sharpe Ratio compare to DOW?
Sumitomo Chemical Co's 1-Year Sharpe Ratio of 0.88 can be compared against companies in the Chemicals 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 Chemicals company?
A good 1-Year Sharpe Ratio depends on the Chemicals 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 Sumitomo Chemical Co and its competitors. Sumitomo Chemical Co's current 1-Year Sharpe Ratio is 0.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Chemical Co stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Chemical Co (FRA:SMM) is currently considered Significantly Overvalued. The stock's GF Value™ is €1.87, compared to a current price of €2.74 — trading 46.4% above its estimated fair value. The current 1-Year Sharpe Ratio is 0.88. Sumitomo Chemical Co's overall GF Score™ is 60/100 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 Sumitomo Chemical Co (FRA:SMM), the current 1-Year Sharpe Ratio is 0.88 as of Aug. 04, 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 Sumitomo Chemical Co (FRA:SMM) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Chemical Co stock appears to be overvalued.
The current stock price of €2.74 is trading 46.4% above its estimated GF Value™ of €1.87.
GuruFocus considers Sumitomo Chemical Co to be Significantly Overvalued.
Key valuation signals for FRA:SMM:
1-Year Sharpe Ratio: 0.88
GF Value™: €1.87 vs. price of €2.74 (46.4% above fair value)
No single metric tells the full story. See the FRA:SMM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Chemical Co Ltd is a Japanese chemical manufacturer. The company operates through six segments. Advanced Medical Solutions covers small molecule drugs, medical oligonucleotides, and regenerative medicine contract manufacturing. Agro & Life Solutions provides pesticides, fertilizers, agricultural materials, insecticides, and feed additives. Essential & Green Materials include synthetic resins, industrial chemicals, methacrylics, aluminum, alumina, and synthetic rubber. ICT & Mobility Solutions handles optical products, semiconductor materials, touch panels, engineering plastics, and battery materials. Sumitomo Pharma focuses on small-molecule drugs, while Others include reagents, energy, plant engineering, transport, and warehousing.
60GF Score
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