Farfetch Stock Alpha and Beta Analysis

FTCH
 Stock
  

USD 7.47  0.46  5.80%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Farfetch Ltd Cl. It also helps investors analyze the systematic and unsystematic risks associated with investing in Farfetch over a specified time horizon. Remember, high Farfetch's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Please check Farfetch Backtesting, Farfetch Valuation, Farfetch Correlation, Farfetch Hype Analysis, Farfetch Volatility, Farfetch History and analyze Farfetch Performance.
  
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Please note that although Farfetch alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., DOW index.) So in this particular case, Farfetch did 0.12  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Farfetch Ltd Cl stock's relative risk over its benchmark. Farfetch Ltd Cl has a beta of 3.30  . Let's try to break down what Farfetch's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Farfetch will likely underperform.
Farfetch Enterprise Value over EBITDA is most likely to increase significantly in the upcoming years. The last year's value of Enterprise Value over EBITDA was reported at 6.49. The current Price to Book Value is estimated to increase to 149.42, while Tangible Assets Book Value per Share are projected to decrease to 5.89.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Farfetch Quarterly Book Value per Share

2.283

Farfetch Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Farfetch market risk premium is the additional return an investor will receive from holding Farfetch long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Farfetch. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Farfetch's performance over market.
α-0.12   β3.30
90 days against DJI

Farfetch expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Farfetch's Buy-and-hold return. Our buy-and-hold chart shows how Farfetch performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Farfetch Market Price Analysis

Market price analysis indicators help investors to evaluate how Farfetch stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Farfetch shares will generate the highest return on investment. By understating and applying Farfetch stock market price indicators, traders can identify Farfetch position entry and exit signals to maximize returns.

Farfetch Return and Market Media

The median price of Farfetch for the period between Thu, Apr 7, 2022 and Wed, Jul 6, 2022 is 9.13 with a coefficient of variation of 27.73. The daily time series for the period is distributed with a sample standard deviation of 2.86, arithmetic mean of 10.31, and mean deviation of 2.45. The Stock received some media coverage during the period.
 Price Growth (%)  
      Timeline 
1
Unclassified Event04/11/2022
2
Consumer Cyclical Stocks Moving Up and Down Friday EBET, DEC...05/20/2022
3
EPS Reported05/26/2022
4
FARFETCH and Neiman Marcus Group Announce the Closing of a 2...05/31/2022

About Farfetch Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all equity instruments such as Ford or other stocks, funds, and ETFs. Alpha measures the amount that position in Farfetch Ltd Cl has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.

Farfetch Upcoming Company Events

As portrayed in its financial statements, the presentation of Farfetch's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Farfetch's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Farfetch's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Farfetch. Please utilize our Beneish M Score to check the likelihood of Farfetch's management manipulating its earnings.
Upcoming Quarterly Report24th of February 2022
Next Financial Report12th of May 2022
Next Fiscal Quarter End31st of December 2021
Next Fiscal Year End24th of February 2022
Last Quarter Report30th of September 2021
Last Financial Announcement31st of December 2020

Build Portfolio with Farfetch

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Please check Farfetch Backtesting, Farfetch Valuation, Farfetch Correlation, Farfetch Hype Analysis, Farfetch Volatility, Farfetch History and analyze Farfetch Performance. Note that the Farfetch Ltd Cl information on this page should be used as a complementary analysis to other Farfetch's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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When running Farfetch Ltd Cl price analysis, check to measure Farfetch's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Farfetch is operating at the current time. Most of Farfetch's value examination focuses on studying past and present price action to predict the probability of Farfetch's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Farfetch's price. Additionally, you may evaluate how the addition of Farfetch to your portfolios can decrease your overall portfolio volatility.
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Farfetch technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Farfetch technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Farfetch trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...