Formula Systems (1985) Stock Up 4.0% Formula Systems (1985) stock opened at $115.77 on Friday. The company has a quick ratio of 1.23, a current ratio of 1.26 and a debt-to-equity ratio of 0.16.

The company’s 50-day moving average is $80.60 and its 200 day moving average is $82.93. The stock has a market capitalization of $22.26 billion, a P/E ratio of 77.58 and a beta of 0.40.

Keeping the example going, a stock with a beta of 1.2 means that if the S&P 500 (the usual market benchmark for equities) returned 10%, the portfolio would return 1.2 * 10% = 12%.

A beta of 1 indicates that the company’s stock has the same level of systematic risk as the market, while a beta greater than 1 indicates that the company’s stock has higher systematic risk ...

If a stock has a beta of 1, it will move in the same direction as the index, by about the same amount. An index fund that mirrors the S&P 500 will have a beta close to 1.

A stock with a Beta value of 2.0 trades at twice the pace set by the index in which it trades. In markets trending upward, the returns of stocks with Betas 2.0 or above can be staggering.

A beta above 1 means the stock is more volatile, while a beta below 1 means it is less volatile. Calculating beta involves comparing the stock’s past price movements to market indices.