Kubota Corp.

Japan Country flag Japan
Sector: Commercial Vehicles & Trucks
Ticker: 6326
ISIN: JP3266400005
Factsheet Factsheet

Levered/Unlevered Beta of Kubota Corp. ( 6326 | JPN)

Beta is a statistical measure that compares the volatility of a stock against the volatility of the broader market, which is typically measured by a reference market index. Since the market is the benchmark, the market's beta is always 1. When a stock has a beta greater than 1, it means the stock is expected to increase by more than the market in up markets and decrease more than the market in down markets. Conversely, a stock with a beta lower than 1 is expected to rise less than the market when the market is moving up , but fall less than the market when the market is moving down. Despite being rare, a stock may have a negative beta, which means the stock moves opposite the general market trend.
Kubota Corp. shows a Beta of 0.80.
This is slightly lower than 1. The volatility of Kubota Corp. according to this measure is slightly lower than the market volatility.

Beta (Ref: NIKKEI 225)
Levered betaUnlevered beta
1-Year0.800.62
2-Year0.860.66
3-Year0.880.68
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Valuation
EV/EBITDA LastEV/EBITDA(e) 2020EV/EBITDA NTM
Kubota Corp.Free trialFree trialFree trial
International PeersFree trialFree trialFree trial
Commercial Vehicles & Trucks7.579.267.98
NIKKEI 2257.699.758.66
Japan7.109.628.77
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Stock Perf excl. Dividends (in JPY)
6326NIKKEI 225Rel. Perf.
Year-to-Date6.3%-1.9%8.2%
1-Week-1.8%-0.7%-1.2%
1-Month0.4%-0.4%0.7%
1-Year10.1%5.4%4.7%
3-Year-10.2%13.8%-24.0%
5-Year7.7%29.8%-22.1%
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International Peers - Kubota Corp.
Company NameCtryMarket
Cap.
last (mUSD)
Kubota Corp.JPN21 222
International Peers Median1.11
Deere & CompanyUSA68 707
AGCO CorporationUSA5 356
Caterpillar Inc.USA79 011
The Toro CompanyUSA8 901
Terex Corp.USA1 266
GPRV Analysis
Kubota Corp.
Intl. Peers
U.S Patents No. 7,882,001 & 8,082,201
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Net Sales Chart
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Quotes Chart

1-Year Rebased Stock Chart

  • Kubota Corp.
  • NIKKEI 225
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Beta calculation details
The calculation divides the covariance of the stock return with the market return by the variance of the market return
thus: beta = cov(ri.rm) / var(rm) where
stock return ri = (stock price at time w / stock price at time (w-1))-1
market return rm = (index at time w / index at time (w-1))-1
E(ri) = arithmetic mean of stock returns
E(rm) = arithmetic mean of market returns
covariance cov (ri,rm) = sum [ri-E(ri))*(rm-E(rm))]/count(ri-E(ri))*count(rm-E(rm))
variance var(rm) = sum[(rm-E(rm))^2]/count(rm-E(rm))^2

About Beta

Standard beta is co-called levered, which means that it reflects the capital structure of the company (including the financial risk linked to the debt level). Unlevered beta (or ungeared beta) compares the risk of an unlevered company (i.e. with no debt in the capital structure) to the risk of the market. Unlevered beta is useful when comparing companies with different capital structures as it focuses on the equity risk. Unlevered beta is generally lower than the levered beta. However, unlevered beta could be higher than levered beta when the net debt is negative (meaning that the company has more cash than debt).
Many different betas can be calculated for a given stock. The main common variables that affect beta calculations are the time period, the reference date, the sampling frequency for closing prices and the reference index.
The calculation divides the covariance of the stock return with the market return by the variance of the market return. Beta is used very often for company valuation using the Discounted Cash Flows (DCF) method. The discount rate is calculated using the Weighted Average Cost of Capital (WACC). The WACC is essentially a blend of the cost of equity and the after-tax cost of debt. The cost of equity is usually calculated using the capital asset pricing model (CAPM), which defines the cost of equity as follows: re = rf + β × (rm - rf)
Where:
rf = Risk-free rate
β = Beta (levered)
(rm - rf) = Market risk premium.