How to Calculate Stock Beta in Excel

Matt Cullen-Meyer | Sept. 26, 2021

Stock beta calculation graph in Excel

Beta is a key component to analyzing stock opportunities and is easily calculated in Excel. When used as an input to the Capital Asset Pricing Model (CAPM), it helps determine a company's estimated cost of equity. This can then be used as a hurdle rate against which to compare expected returns of different stock opportunities. The resultant cost of equity can also be used in discounted cash flow (DCF) models to estimate the intrinsic value of a company by discounting future cash flows back to the present.

Read More →

How to Calculate Historical Stock Price Volatility with Python

Matt Cullen-Meyer | May 25, 2020

Historical stock volatility histogram for Apple Inc (AAPL)

The following Python script is used to automatically export stock prices for a given company and compute its historical volatility over 12 months. The volatility calculations are especially helpful when compared to the implied volatility of a stock option, which can indicate whether that option is over- or under-valued. The script concludes with instructions on how to visualize the historical distribution of returns with a histogram plot.

Read More →