Beta

Beta measures how much a stock has moved relative to the market: 1.5 means it has historically moved 1.5% for each 1% in the S&P 500. High-beta names sit at the long-dated, growth end of the rates line, so they fall hardest on a hawkish Fed.

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In MochaLearnLearn how to read US earnings
  • S&P 500The S&P 500 is about five hundred of the largest American companies, weighted by market value, and the number money is…
  • Book valueBook value is total assets minus total liabilities on the balance sheet, what shareholders own on paper. For a bank it…
  • Forward guidance (Fed)Forward guidance is the Fed telling the market roughly what it plans to do next, so rate moves arrive pre-priced. When…
  • P/E ratioThe P/E ratio is share price divided by the last twelve months of earnings per share; 25 means $25 for each dollar of…
  • Enterprise valueEnterprise value is market capitalization plus debt minus cash: the price of buying the whole business, lenders…
  • Growth vs value stocksGrowth vs value is the split between companies priced for profits far in the future, like most technology, and…

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