Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2024-04-27), AerCap Holdings NV's Beta is 1.05.
AerCap Holdings NV Beta Historical Data
The historical data trend for AerCap Holdings NV's Beta can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of AerCap Holdings NV's Beta
For the Rental & Leasing Services subindustry, AerCap Holdings NV's Beta, along with its competitors' market caps and Beta 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.
AerCap Holdings NV's Beta Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, AerCap Holdings NV's Beta distribution charts can be found below:
* The bar in red indicates where AerCap Holdings NV's Beta falls into.
AerCap Holdings NV Beta Calculation
Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. A stock's beta can be calculated by dividing the product of the covariance of the individual stock's returns and the market's returns by the variance of the market's returns over a specified period. Basically, GuruFocus uses the returns calculated over three-year period.
AerCap Holdings NV (NYSE:AER) Beta Explanation
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. We usually compare beta to 1. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Beta is primarily used in the Capital Asset Pricing Model (CAPM) to calculate the Cost of Equity, which can be used in the calculation of WACC %. The formula of Cost of Equity is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
AerCap Holdings NV Beta Related Terms
Thank you for viewing the detailed overview of AerCap Holdings NV's Beta provided by GuruFocus.com. Please click on the following links to see related term pages.
AerCap Holdings NV (AerCap Holdings NV) Business Description
AerCap Holdings NV is an aircraft leasing company. Its major activities include leasing, financing, sales, and management of commercial aircraft and engines. It also provides aircraft asset management and corporate services to securitization vehicles, joint ventures, and other third parties. Through its subsidiary, the group also provides engine leasing, certified aircraft engines, airframes, and engine parts. Its geographical segments include China, United States, and Other countries.
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