PRPL (Purple Innovation) 1-Year Sharpe Ratio: -0.86 (As of Jul. 03, 2026)


PRPL Purple Innovation Inc PRPL
26 GF Score
Price $0.37
GF Value $0.86
Valuation Possible Value Trap
! 7 Warning Signs
View Full Analysis

What is Purple Innovation 1-Year Sharpe Ratio?

Purple Innovation PRPL +0.92% 26 1-Year Sharpe Ratio is -0.86 as of Jul. 03, 2026. GuruFocus rates PRPL with a GF Score™ of 26/100 and a GF Value™ of $0.86 (Possible Value Trap). The stock has 7 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 (2026-07-03), Purple Innovation's 1-Year Sharpe Ratio is -0.86.

Purple Innovation  (NAS:PRPL) 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.

Purple Innovation 1-Year Sharpe Ratio Related Terms

PRPL vs VIOT, CRWS, MWYN: 1-Year Sharpe Ratio Comparison

For the Furnishings, Fixtures & Appliances subindustry, Purple Innovation'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.

Purple Innovation 1-Year Sharpe Ratio vs Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Purple Innovation's 1-Year Sharpe Ratio distribution charts can be found below:

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


PRPL
26GF Score
Purple Innovation Inc PRPL
1-Year Sharpe Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Purple Innovation 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 -0.86 mean?
Purple Innovation (PRPL) has a 1-Year Sharpe Ratio of -0.86 as of Jul. 03, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Purple Innovation and its competitors.
Is Purple Innovation's 1-Year Sharpe Ratio too high?
Purple Innovation's current 1-Year Sharpe Ratio is -0.86. Overall, Purple Innovation has a GF Score™ of 26/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Purple Innovation's 1-Year Sharpe Ratio compare to VIOT and CRWS?
Purple Innovation's 1-Year Sharpe Ratio of -0.86 can be compared against companies in the Furnishings, Fixtures & Appliances 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 Furnishings, Fixtures & Appliances company?
A good 1-Year Sharpe Ratio depends on the Furnishings, Fixtures & Appliances 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 Purple Innovation and its competitors. Purple Innovation's current 1-Year Sharpe Ratio is -0.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Purple Innovation stock overvalued right now?
Based on GuruFocus' analysis, Purple Innovation (PRPL) is currently considered Possible Value Trap. The stock's GF Value™ is $0.86, compared to a current price of $0.37 — trading 57.2% below its estimated fair value. The current 1-Year Sharpe Ratio is -0.86. Purple Innovation's overall GF Score™ is 26/100 with 7 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 Purple Innovation (PRPL), the current 1-Year Sharpe Ratio is -0.86 as of Jul. 03, 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 Purple Innovation (PRPL) Overvalued in 2026?

Based on GuruFocus' analysis, Purple Innovation stock appears to be undervalued. The current stock price of $0.37 is trading 57.2% below its estimated GF Value™ of $0.86. GuruFocus considers Purple Innovation to be Possible Value Trap.

Key valuation signals for PRPL:

  • 1-Year Sharpe Ratio: -0.86
  • GF Value™: $0.86 vs. price of $0.37 (57.2% below fair value)
  • GF Score™: 26/100 with 7 warning signs

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

Purple Innovation Business Description

Address 4100 North Chapel Ridge Road, Suite 200, Lehi, UT, USA, 84048
Purple Innovation Inc designs and manufactures sleep products. Using its GelFlex Grid technology, the company designs, manufactures, and offers branded comfort sleep products, including mattresses, pillows, cushions, mattress protectors, bases, sheets, and others. It markets and sells these products through direct-to-consumer e-commerce channels, retail brick-and-mortar wholesale partners, Purple showrooms, and third-party online retailers.
26GF Score

Get the complete analysis for PRPL

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

$0.37
Price
$0.86
GF Value