How Much Does This Stock Move With the Market?

Beta measures systematic risk — how much a stock amplifies or dampens market moves. A beta of 1.5 means if the market falls 10%, this stock typically falls 15%.

BetaSystematic RiskRegressionLevered Beta

Live Result

1.2375

ƒ: beta_unlevered * (1 + (1 - tax) * (D / E))raw: 1.23750

ƒ(x)

Use variable names from the panel above (e.g. FV, r, n) — or type numbers directly: 10000 / (1 + 0.08)^10

beta_unlevered% as decimal

Asset beta (beta with no debt)

beta_unlevered = 0.9

tax% as decimal

Corporate tax rate (decimal)

tax = 0.25

Market value of debt

D = 500

Market value of equity

E = 1000

💡 You can also enter values directly in the formula: 10000 / (1 + 0.08)^10

⬇ Export Calculation

Exports a plain .txt file with your expression, formula, all variable values, result, and educational notes — ready to paste into any report, Word doc, Notion, or Google Docs.

The exported file includes the formula in standard mathematical notation — you can paste it directly into Excel, Google Sheets, or back into FinanceSheep.

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Learn: How Much Does This Stock Move With the Market?

Estimating Discount Rates · Educational Guide

The Core Idea

If the market goes up 10% and your stock goes up 15%, your stock has a beta of 1.5. If it only goes up 7%, beta = 0.7. Beta measures how "jumpy" a stock is compared to the market — the amplifier or dampener on market risk.

How It Works

Beta = covariance(stock, market) / variance(market). Beta = 1 → moves with the market. Beta > 1 → amplifies market moves (tech, airlines). Beta < 1 → dampens market moves (utilities, food). Beta < 0 → moves opposite (rare — gold sometimes).

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Real-World Example: Apple historically has beta ~1.2. Johnson & Johnson: ~0.7. Airlines: ~1.5–2.0. Utilities: ~0.3–0.6. If market drops 10%: Apple drops ~12%, J&J drops ~7%, airlines could drop 15–20%.

How Much Does This Stock Move With the Market?

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