Capital Asset Pricing Model (CAPM)
Capital asset pricing model (CAPM) indicates what should be the expected or required rate of return on risky assets like Airbnb Inc. common stock.
Paying user area
Try for free
Airbnb Inc. pages available for free this week:
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Selected Financial Data since 2020
- Current Ratio since 2020
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Airbnb Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Rates of Return
Airbnb Inc., monthly rates of return
| Airbnb Inc. (ABNB) | Standard & Poor’s 500 (S&P 500) | |||||
|---|---|---|---|---|---|---|
| t | Date | PriceABNB,t1 | DividendABNB,t1 | RABNB,t2 | PriceS&P 500,t | RS&P 500,t3 |
| Dec 31, 2020 | ||||||
| 1. | Jan 31, 2021 | |||||
| 2. | Feb 28, 2021 | |||||
| 3. | Mar 31, 2021 | |||||
| . | . | . | . | . | . | . |
| . | . | . | . | . | . | . |
| . | . | . | . | . | . | . |
| 47. | Nov 30, 2024 | |||||
| 48. | Dec 31, 2024 | |||||
| Average (R): | ||||||
| Standard deviation: | ||||||
| Airbnb Inc. (ABNB) | Standard & Poor’s 500 (S&P 500) | |||||
|---|---|---|---|---|---|---|
| t | Date | PriceABNB,t1 | DividendABNB,t1 | RABNB,t2 | PriceS&P 500,t | RS&P 500,t3 |
| Dec 31, 2020 | ||||||
| 1. | Jan 31, 2021 | |||||
| 2. | Feb 28, 2021 | |||||
| 3. | Mar 31, 2021 | |||||
| 4. | Apr 30, 2021 | |||||
| 5. | May 31, 2021 | |||||
| 6. | Jun 30, 2021 | |||||
| 7. | Jul 31, 2021 | |||||
| 8. | Aug 31, 2021 | |||||
| 9. | Sep 30, 2021 | |||||
| 10. | Oct 31, 2021 | |||||
| 11. | Nov 30, 2021 | |||||
| 12. | Dec 31, 2021 | |||||
| 13. | Jan 31, 2022 | |||||
| 14. | Feb 28, 2022 | |||||
| 15. | Mar 31, 2022 | |||||
| 16. | Apr 30, 2022 | |||||
| 17. | May 31, 2022 | |||||
| 18. | Jun 30, 2022 | |||||
| 19. | Jul 31, 2022 | |||||
| 20. | Aug 31, 2022 | |||||
| 21. | Sep 30, 2022 | |||||
| 22. | Oct 31, 2022 | |||||
| 23. | Nov 30, 2022 | |||||
| 24. | Dec 31, 2022 | |||||
| 25. | Jan 31, 2023 | |||||
| 26. | Feb 28, 2023 | |||||
| 27. | Mar 31, 2023 | |||||
| 28. | Apr 30, 2023 | |||||
| 29. | May 31, 2023 | |||||
| 30. | Jun 30, 2023 | |||||
| 31. | Jul 31, 2023 | |||||
| 32. | Aug 31, 2023 | |||||
| 33. | Sep 30, 2023 | |||||
| 34. | Oct 31, 2023 | |||||
| 35. | Nov 30, 2023 | |||||
| 36. | Dec 31, 2023 | |||||
| 37. | Jan 31, 2024 | |||||
| 38. | Feb 29, 2024 | |||||
| 39. | Mar 31, 2024 | |||||
| 40. | Apr 30, 2024 | |||||
| 41. | May 31, 2024 | |||||
| 42. | Jun 30, 2024 | |||||
| 43. | Jul 31, 2024 | |||||
| 44. | Aug 31, 2024 | |||||
| 45. | Sep 30, 2024 | |||||
| 46. | Oct 31, 2024 | |||||
| 47. | Nov 30, 2024 | |||||
| 48. | Dec 31, 2024 | |||||
| Average (R): | ||||||
| Standard deviation: | ||||||
Show all
1 Data in US$ per share of common stock, adjusted for splits and stock dividends.
2 Rate of return on common stock of ABNB during period t
3 Rate of return on S&P 500 (the market portfolio proxy) during period t
Variance and Covariance
Airbnb Inc., calculation of variance and covariance of returns
| t | Date | RABNB,t | RS&P 500,t | (RABNB,t–RABNB)2 | (RS&P 500,t–RS&P 500)2 | (RABNB,t–RABNB)×(RS&P 500,t–RS&P 500) |
|---|---|---|---|---|---|---|
| 1. | Jan 31, 2021 | |||||
| 2. | Feb 28, 2021 | |||||
| 3. | Mar 31, 2021 | |||||
| . | . | . | . | . | . | . |
| . | . | . | . | . | . | . |
| . | . | . | . | . | . | . |
| 47. | Nov 30, 2024 | |||||
| 48. | Dec 31, 2024 | |||||
| Total (Σ): | ||||||
| t | Date | RABNB,t | RS&P 500,t | (RABNB,t–RABNB)2 | (RS&P 500,t–RS&P 500)2 | (RABNB,t–RABNB)×(RS&P 500,t–RS&P 500) |
|---|---|---|---|---|---|---|
| 1. | Jan 31, 2021 | |||||
| 2. | Feb 28, 2021 | |||||
| 3. | Mar 31, 2021 | |||||
| 4. | Apr 30, 2021 | |||||
| 5. | May 31, 2021 | |||||
| 6. | Jun 30, 2021 | |||||
| 7. | Jul 31, 2021 | |||||
| 8. | Aug 31, 2021 | |||||
| 9. | Sep 30, 2021 | |||||
| 10. | Oct 31, 2021 | |||||
| 11. | Nov 30, 2021 | |||||
| 12. | Dec 31, 2021 | |||||
| 13. | Jan 31, 2022 | |||||
| 14. | Feb 28, 2022 | |||||
| 15. | Mar 31, 2022 | |||||
| 16. | Apr 30, 2022 | |||||
| 17. | May 31, 2022 | |||||
| 18. | Jun 30, 2022 | |||||
| 19. | Jul 31, 2022 | |||||
| 20. | Aug 31, 2022 | |||||
| 21. | Sep 30, 2022 | |||||
| 22. | Oct 31, 2022 | |||||
| 23. | Nov 30, 2022 | |||||
| 24. | Dec 31, 2022 | |||||
| 25. | Jan 31, 2023 | |||||
| 26. | Feb 28, 2023 | |||||
| 27. | Mar 31, 2023 | |||||
| 28. | Apr 30, 2023 | |||||
| 29. | May 31, 2023 | |||||
| 30. | Jun 30, 2023 | |||||
| 31. | Jul 31, 2023 | |||||
| 32. | Aug 31, 2023 | |||||
| 33. | Sep 30, 2023 | |||||
| 34. | Oct 31, 2023 | |||||
| 35. | Nov 30, 2023 | |||||
| 36. | Dec 31, 2023 | |||||
| 37. | Jan 31, 2024 | |||||
| 38. | Feb 29, 2024 | |||||
| 39. | Mar 31, 2024 | |||||
| 40. | Apr 30, 2024 | |||||
| 41. | May 31, 2024 | |||||
| 42. | Jun 30, 2024 | |||||
| 43. | Jul 31, 2024 | |||||
| 44. | Aug 31, 2024 | |||||
| 45. | Sep 30, 2024 | |||||
| 46. | Oct 31, 2024 | |||||
| 47. | Nov 30, 2024 | |||||
| 48. | Dec 31, 2024 | |||||
| Total (Σ): | ||||||
Show all
VarianceABNB = Σ(RABNB,t–RABNB)2 ÷ (48 – 1)
= ÷ (48 – 1)
=
VarianceS&P 500 = Σ(RS&P 500,t–RS&P 500)2 ÷ (48 – 1)
= ÷ (48 – 1)
=
CovarianceABNB, S&P 500 = Σ(RABNB,t–RABNB)×(RS&P 500,t–RS&P 500) ÷ (48 – 1)
= ÷ (48 – 1)
=
Systematic Risk (β) Estimation
| VarianceABNB | |
| VarianceS&P 500 | |
| CovarianceABNB, S&P 500 | |
| Correlation coefficientABNB, S&P 5001 | |
| βABNB2 | |
| αABNB3 |
Calculations
1 Correlation coefficientABNB, S&P 500
= CovarianceABNB, S&P 500 ÷ (Standard deviationABNB × Standard deviationS&P 500)
= ÷ ( × )
=
2 βABNB
= CovarianceABNB, S&P 500 ÷ VarianceS&P 500
= ÷
=
3 αABNB
= AverageABNB – βABNB × AverageS&P 500
= – ×
=
Expected Rate of Return
| Assumptions | ||
| Rate of return on LT Treasury Composite1 | RF | |
| Expected rate of return on market portfolio2 | E(RM) | |
| Systematic risk (β) of Airbnb Inc. common stock | βABNB | |
| Expected rate of return on Airbnb Inc. common stock3 | E(RABNB) | |
1 Unweighted average of bid yields on all outstanding fixed-coupon U.S. Treasury bonds neither due or callable in less than 10 years (risk-free rate of return proxy).
3 E(RABNB) = RF + βABNB [E(RM) – RF]
= + [ – ]
=