Sumitomo Mitsui Trust Holdings Inc. (Formerly Mitsui Trust Holdings, Inc.)

Japan Country flag Japan
Sector: Banks
Ticker: 8309
ISIN: JP3892100003
Factsheet Factsheet

Levered/Unlevered Beta of Sumitomo Mitsui Trust Holdings Inc. ( 8309 | 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.
Sumitomo Mitsui Trust Holdings Inc. shows a Beta of 0.30.
This is significantly lower than 1. The volatility of Sumitomo Mitsui Trust Holdings Inc. according to this measure is significantly lower than the market volatility.

Beta (Ref: NIKKEI 225)
Levered betaUnlevered beta
1-Year0.30N/A
2-Year0.37N/A
3-Year0.42N/A
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Valuation
P/BookP/Earnings (e) 2024P/Earnings NTM
Sumitomo Mitsui Trust Holdings Inc.Free trialFree trialFree trial
International PeersFree trialFree trialFree trial
Banks0.959.489.43
NIKKEI 2251.1613.0713.07
Japan1.1814.7414.60
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Stock Perf excl. Dividends (in JPY)
8309NIKKEI 225Rel. Perf.
Year-to-Date20.4%21.8%-1.4%
1-Week-2.3%1.9%-4.2%
1-Month7.2%3.9%3.3%
1-Year42.4%48.4%-5.9%
3-Year62.6%39.7%22.9%
5-Year63.2%90.7%-27.5%
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International Peers - Sumitomo Mitsui Trust Holdings Inc.
Company NameCtryMarket
Cap.
last (mUSD)
Sumitomo Mitsui Trust H...JPN15 617
International Peers Median0.37
Mizuho Financial Group ...JPN50 076
Mitsubishi UFJ Financia...JPN120 067
Sumitomo Mitsui Financi...JPN77 966
Resona Holdings Inc.JPN14 325
Industrial Bank Co., Lt...CHN46 754
GPRV Analysis
Sumitomo Mitsui Trus...
Intl. Peers
U.S Patents No. 7,882,001 & 8,082,201
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Total Revenue Chart
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Quotes Chart

1-Year Rebased Stock Chart

  • Sumitomo Mitsui Trust Holdings Inc.
  • 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.