Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2024-04-29), SMART Global Holdings's Beta is 2.11.
* 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 SMART Global Holdings's Beta
For the Semiconductors subindustry, SMART Global Holdings'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.
SMART Global Holdings's Beta Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, SMART Global Holdings's Beta distribution charts can be found below:
* The bar in red indicates where SMART Global Holdings's Beta falls into.
SMART Global Holdings 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.
SMART Global Holdings (NAS:SGH) 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)
SMART Global Holdings Beta Related Terms
Thank you for viewing the detailed overview of SMART Global Holdings's Beta provided by GuruFocus.com. Please click on the following links to see related term pages.
SMART Global Holdings (SMART Global Holdings) Business Description
SMART Global Holdings Inc is a designer and manufacturer of electronic products focused on memory and computing technology areas. It specializes in application-specific product development and support for customers in the enterprise, government and original equipment manufacturer (OEM) markets. It operates in three segments such as Memory Solutions in which Memory Solutions group, under our SMART Modular brand, provides high performance and reliable memory solutions through the design, development and advanced packaging of leading-edge to extended lifecycle products. Intelligent Platform Solutions in their IPS group, under our Penguin Solutions and newly acquired Stratus Technologies brands, offers specialized platform solutions and services for high-performance computing.
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