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 (2026-07-12), Iridium Communications's 1-Year Sharpe Ratio is 1.13.
Iridium Communications (NAS:IRDM) 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.
Iridium Communications 1-Year Sharpe Ratio Related Terms
IRDM vs LBRDA, TDS, LBTYA: 1-Year Sharpe Ratio Comparison
For the Telecom Services subindustry, Iridium Communications'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.
Iridium Communications 1-Year Sharpe Ratio vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Iridium Communications's 1-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where Iridium Communications's 1-Year Sharpe Ratio falls into.
Iridium Communications 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.
Iridium Communications (IRDM) has a 1-Year Sharpe Ratio of 1.13 as of Jul. 12, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Iridium Communications and its competitors.
Is Iridium Communications' 1-Year Sharpe Ratio too high?
Iridium Communications' current 1-Year Sharpe Ratio is 1.13. Overall, Iridium Communications has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Iridium Communications' 1-Year Sharpe Ratio compare to LBRDA and TDS?
Iridium Communications' 1-Year Sharpe Ratio of 1.13 can be compared against companies in the Telecommunication Services 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 Telecommunication Services company?
A good 1-Year Sharpe Ratio depends on the Telecommunication Services 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 Iridium Communications and its competitors. Iridium Communications's current 1-Year Sharpe Ratio is 1.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Iridium Communications stock overvalued right now?
Based on GuruFocus' analysis, Iridium Communications (IRDM) is currently considered Significantly Overvalued. The stock's GF Value™ is $36.51, compared to a current price of $50.06 — trading 37.1% above its estimated fair value. The current 1-Year Sharpe Ratio is 1.13. Iridium Communications' overall GF Score™ is 77/100 with 10 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 Iridium Communications (IRDM), the current 1-Year Sharpe Ratio is 1.13 as of Jul. 12, 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 Iridium Communications (IRDM) Overvalued in 2026?
Based on GuruFocus' analysis, Iridium Communications stock appears to be overvalued.
The current stock price of $50.06 is trading 37.1% above its estimated GF Value™ of $36.51.
GuruFocus considers Iridium Communications to be Significantly Overvalued.
Key valuation signals for IRDM:
1-Year Sharpe Ratio: 1.13
GF Value™: $36.51 vs. price of $50.06 (37.1% above fair value)
No single metric tells the full story. See the IRDM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Iridium Communications Inc is the commercial provider of communications services offering true globalised coverage, connecting people, organizations, and assets to and from anywhere, in real time. The company is a provider of mobile voice and data communications services through a constellation of low-earth-orbiting satellites. Iridium's solutions are ideally suited for industries such as maritime, aviation, government/military, emergency/humanitarian services, mining, forestry, oil and gas, heavy equipment, transportation, and utilities. Iridium also provides service to subscribers from the U.S. Department of Defense, as well as other civil and government agencies world-wide. The Company operates in one business segment, providing satellite communications services and products.
77GF Score
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