Wayfair Stock Alpha and Beta Analysis

W Stock  USD 67.88  0.29  0.43%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Wayfair. It also helps investors analyze the systematic and unsystematic risks associated with investing in Wayfair over a specified time horizon. Remember, high Wayfair'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. Key technical indicators related to Wayfair's market risk premium analysis include:
Beta
3.59
Alpha
(0.37)
Risk
3.88
Sharpe Ratio
0.0797
Expected Return
0.31
Please note that although Wayfair 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., NYSE Composite index.) So in this particular case, Wayfair did 0.37  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 Wayfair stock's relative risk over its benchmark. Wayfair has a beta of 3.59  . As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Wayfair will likely underperform. Price Book Value Ratio is likely to drop to -2.73 in 2024. Enterprise Value Multiple is likely to drop to -32.02 in 2024.

Wayfair Quarterly Cash And Equivalents

368 Million

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.
  
Check out Wayfair Backtesting, Wayfair Valuation, Wayfair Correlation, Wayfair Hype Analysis, Wayfair Volatility, Wayfair History and analyze Wayfair Performance.
For more information on how to buy Wayfair Stock please use our How to Invest in Wayfair guide.

Wayfair Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Wayfair market risk premium is the additional return an investor will receive from holding Wayfair 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 Wayfair. 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 Wayfair's performance over market.
α-0.37   β3.59

Wayfair 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 Wayfair's Buy-and-hold return. Our buy-and-hold chart shows how Wayfair performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Wayfair Market Price Analysis

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

Wayfair Return and Market Media

The median price of Wayfair for the period between Sat, Dec 30, 2023 and Fri, Mar 29, 2024 is 56.39 with a coefficient of variation of 9.27. The daily time series for the period is distributed with a sample standard deviation of 5.3, arithmetic mean of 57.14, and mean deviation of 4.55. The Stock received a lot of media exposure during the period.
 Price Growth (%)  
       Timeline  
1
Decoding Wayfairs Options Activity Whats the Big Picture
01/25/2024
2
What the Options Market Tells Us About Wayfair
02/23/2024
3
Q4 2023 Wayfair Inc Earnings Call Transcript
02/28/2024
4
Disposition of 20000 shares by Thomas Netzer of Wayfair at 59.72 subject to Rule 16b-3
03/01/2024
5
Retail E-commerce Market Anticipated to Hit 17.6 trillion by 2032 Coupang Corp, Wayfair Inc., Etsy At 12.4 percent CAGR
03/05/2024
6
Disposition of 3373 shares by Steven Conine of Wayfair at 60.37 subject to Rule 16b-3
03/07/2024
7
Welcome to The Wayborhood - New Brand Campaign from Wayfair Empowers Everyone to Create their Own Unique Expression of Home
03/11/2024
8
Wayfair Inc. Shares Could Be 45 percent Below Their Intrinsic Value Estimate
03/12/2024
9
Are You a Momentum Investor This 1 Stock Could Be the Perfect Pick
03/15/2024
10
Disposition of 984 shares by Thomas Netzer of Wayfair at 60.58 subject to Rule 16b-3
03/18/2024
11
Why Wayfair Stock Is Up Today
03/20/2024
12
Disposition of 2894 shares by Thomas Netzer of Wayfair at 55.3 subject to Rule 16b-3
03/22/2024
13
Should You Buy Wayfair Inc Stock on Thursday - InvestorsObserver
03/28/2024

About Wayfair 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 financial instruments including Wayfair or other stocks. Alpha measures the amount that position in Wayfair 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.
 2023 2024 (projected)
Dividend Yield0.03540.0314
Price To Sales Ratio0.590.56

Wayfair Upcoming Company Events

As portrayed in its financial statements, the presentation of Wayfair's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Wayfair's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Wayfair's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Wayfair. Please utilize our Beneish M Score to check the likelihood of Wayfair's management manipulating its earnings.
22nd of February 2024
Upcoming Quarterly Report
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2nd of May 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
22nd of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View

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When determining whether Wayfair is a strong investment it is important to analyze Wayfair's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Wayfair's future performance. For an informed investment choice regarding Wayfair Stock, refer to the following important reports:
Check out Wayfair Backtesting, Wayfair Valuation, Wayfair Correlation, Wayfair Hype Analysis, Wayfair Volatility, Wayfair History and analyze Wayfair Performance.
For more information on how to buy Wayfair Stock please use our How to Invest in Wayfair guide.
You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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When running Wayfair's price analysis, check to measure Wayfair'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 Wayfair is operating at the current time. Most of Wayfair's value examination focuses on studying past and present price action to predict the probability of Wayfair's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Wayfair's price. Additionally, you may evaluate how the addition of Wayfair to your portfolios can decrease your overall portfolio volatility.
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Wayfair 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 Wayfair technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Wayfair 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...