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 CrowdStrike Holdings Inc. common stock.
Paying user area
Try for free
CrowdStrike Holdings Inc. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to CrowdStrike Holdings Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Rates of Return
CrowdStrike Holdings Inc., monthly rates of return
| CrowdStrike Holdings Inc. (CRWD) | Standard & Poor’s 500 (S&P 500) | |||||
|---|---|---|---|---|---|---|
| t | Date | PriceCRWD,t1 | DividendCRWD,t1 | RCRWD,t2 | PriceS&P 500,t | RS&P 500,t3 |
| Jun 30, 2019 | ||||||
| 1. | Jul 31, 2019 | |||||
| 2. | Aug 31, 2019 | |||||
| 3. | Sep 30, 2019 | |||||
| . | . | . | . | . | . | . |
| . | . | . | . | . | . | . |
| . | . | . | . | . | . | . |
| 54. | Dec 31, 2023 | |||||
| 55. | Jan 31, 2024 | |||||
| Average (R): | ||||||
| Standard deviation: | ||||||
| CrowdStrike Holdings Inc. (CRWD) | Standard & Poor’s 500 (S&P 500) | |||||
|---|---|---|---|---|---|---|
| t | Date | PriceCRWD,t1 | DividendCRWD,t1 | RCRWD,t2 | PriceS&P 500,t | RS&P 500,t3 |
| Jun 30, 2019 | ||||||
| 1. | Jul 31, 2019 | |||||
| 2. | Aug 31, 2019 | |||||
| 3. | Sep 30, 2019 | |||||
| 4. | Oct 31, 2019 | |||||
| 5. | Nov 30, 2019 | |||||
| 6. | Dec 31, 2019 | |||||
| 7. | Jan 31, 2020 | |||||
| 8. | Feb 29, 2020 | |||||
| 9. | Mar 31, 2020 | |||||
| 10. | Apr 30, 2020 | |||||
| 11. | May 31, 2020 | |||||
| 12. | Jun 30, 2020 | |||||
| 13. | Jul 31, 2020 | |||||
| 14. | Aug 31, 2020 | |||||
| 15. | Sep 30, 2020 | |||||
| 16. | Oct 31, 2020 | |||||
| 17. | Nov 30, 2020 | |||||
| 18. | Dec 31, 2020 | |||||
| 19. | Jan 31, 2021 | |||||
| 20. | Feb 28, 2021 | |||||
| 21. | Mar 31, 2021 | |||||
| 22. | Apr 30, 2021 | |||||
| 23. | May 31, 2021 | |||||
| 24. | Jun 30, 2021 | |||||
| 25. | Jul 31, 2021 | |||||
| 26. | Aug 31, 2021 | |||||
| 27. | Sep 30, 2021 | |||||
| 28. | Oct 31, 2021 | |||||
| 29. | Nov 30, 2021 | |||||
| 30. | Dec 31, 2021 | |||||
| 31. | Jan 31, 2022 | |||||
| 32. | Feb 28, 2022 | |||||
| 33. | Mar 31, 2022 | |||||
| 34. | Apr 30, 2022 | |||||
| 35. | May 31, 2022 | |||||
| 36. | Jun 30, 2022 | |||||
| 37. | Jul 31, 2022 | |||||
| 38. | Aug 31, 2022 | |||||
| 39. | Sep 30, 2022 | |||||
| 40. | Oct 31, 2022 | |||||
| 41. | Nov 30, 2022 | |||||
| 42. | Dec 31, 2022 | |||||
| 43. | Jan 31, 2023 | |||||
| 44. | Feb 28, 2023 | |||||
| 45. | Mar 31, 2023 | |||||
| 46. | Apr 30, 2023 | |||||
| 47. | May 31, 2023 | |||||
| 48. | Jun 30, 2023 | |||||
| 49. | Jul 31, 2023 | |||||
| 50. | Aug 31, 2023 | |||||
| 51. | Sep 30, 2023 | |||||
| 52. | Oct 31, 2023 | |||||
| 53. | Nov 30, 2023 | |||||
| 54. | Dec 31, 2023 | |||||
| 55. | Jan 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 CRWD during period t
3 Rate of return on S&P 500 (the market portfolio proxy) during period t
Variance and Covariance
CrowdStrike Holdings Inc., calculation of variance and covariance of returns
| t | Date | RCRWD,t | RS&P 500,t | (RCRWD,t–RCRWD)2 | (RS&P 500,t–RS&P 500)2 | (RCRWD,t–RCRWD)×(RS&P 500,t–RS&P 500) |
|---|---|---|---|---|---|---|
| 1. | Jul 31, 2019 | |||||
| 2. | Aug 31, 2019 | |||||
| 3. | Sep 30, 2019 | |||||
| . | . | . | . | . | . | . |
| . | . | . | . | . | . | . |
| . | . | . | . | . | . | . |
| 54. | Dec 31, 2023 | |||||
| 55. | Jan 31, 2024 | |||||
| Total (Σ): | ||||||
| t | Date | RCRWD,t | RS&P 500,t | (RCRWD,t–RCRWD)2 | (RS&P 500,t–RS&P 500)2 | (RCRWD,t–RCRWD)×(RS&P 500,t–RS&P 500) |
|---|---|---|---|---|---|---|
| 1. | Jul 31, 2019 | |||||
| 2. | Aug 31, 2019 | |||||
| 3. | Sep 30, 2019 | |||||
| 4. | Oct 31, 2019 | |||||
| 5. | Nov 30, 2019 | |||||
| 6. | Dec 31, 2019 | |||||
| 7. | Jan 31, 2020 | |||||
| 8. | Feb 29, 2020 | |||||
| 9. | Mar 31, 2020 | |||||
| 10. | Apr 30, 2020 | |||||
| 11. | May 31, 2020 | |||||
| 12. | Jun 30, 2020 | |||||
| 13. | Jul 31, 2020 | |||||
| 14. | Aug 31, 2020 | |||||
| 15. | Sep 30, 2020 | |||||
| 16. | Oct 31, 2020 | |||||
| 17. | Nov 30, 2020 | |||||
| 18. | Dec 31, 2020 | |||||
| 19. | Jan 31, 2021 | |||||
| 20. | Feb 28, 2021 | |||||
| 21. | Mar 31, 2021 | |||||
| 22. | Apr 30, 2021 | |||||
| 23. | May 31, 2021 | |||||
| 24. | Jun 30, 2021 | |||||
| 25. | Jul 31, 2021 | |||||
| 26. | Aug 31, 2021 | |||||
| 27. | Sep 30, 2021 | |||||
| 28. | Oct 31, 2021 | |||||
| 29. | Nov 30, 2021 | |||||
| 30. | Dec 31, 2021 | |||||
| 31. | Jan 31, 2022 | |||||
| 32. | Feb 28, 2022 | |||||
| 33. | Mar 31, 2022 | |||||
| 34. | Apr 30, 2022 | |||||
| 35. | May 31, 2022 | |||||
| 36. | Jun 30, 2022 | |||||
| 37. | Jul 31, 2022 | |||||
| 38. | Aug 31, 2022 | |||||
| 39. | Sep 30, 2022 | |||||
| 40. | Oct 31, 2022 | |||||
| 41. | Nov 30, 2022 | |||||
| 42. | Dec 31, 2022 | |||||
| 43. | Jan 31, 2023 | |||||
| 44. | Feb 28, 2023 | |||||
| 45. | Mar 31, 2023 | |||||
| 46. | Apr 30, 2023 | |||||
| 47. | May 31, 2023 | |||||
| 48. | Jun 30, 2023 | |||||
| 49. | Jul 31, 2023 | |||||
| 50. | Aug 31, 2023 | |||||
| 51. | Sep 30, 2023 | |||||
| 52. | Oct 31, 2023 | |||||
| 53. | Nov 30, 2023 | |||||
| 54. | Dec 31, 2023 | |||||
| 55. | Jan 31, 2024 | |||||
| Total (Σ): | ||||||
Show all
VarianceCRWD = Σ(RCRWD,t–RCRWD)2 ÷ (55 – 1)
= ÷ (55 – 1)
=
VarianceS&P 500 = Σ(RS&P 500,t–RS&P 500)2 ÷ (55 – 1)
= ÷ (55 – 1)
=
CovarianceCRWD, S&P 500 = Σ(RCRWD,t–RCRWD)×(RS&P 500,t–RS&P 500) ÷ (55 – 1)
= ÷ (55 – 1)
=
Systematic Risk (β) Estimation
| VarianceCRWD | |
| VarianceS&P 500 | |
| CovarianceCRWD, S&P 500 | |
| Correlation coefficientCRWD, S&P 5001 | |
| βCRWD2 | |
| αCRWD3 |
Calculations
1 Correlation coefficientCRWD, S&P 500
= CovarianceCRWD, S&P 500 ÷ (Standard deviationCRWD × Standard deviationS&P 500)
= ÷ ( × )
=
2 βCRWD
= CovarianceCRWD, S&P 500 ÷ VarianceS&P 500
= ÷
=
3 αCRWD
= AverageCRWD – βCRWD × 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 CrowdStrike Holdings Inc. common stock | βCRWD | |
| Expected rate of return on CrowdStrike Holdings Inc. common stock3 | E(RCRWD) | |
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(RCRWD) = RF + βCRWD [E(RM) – RF]
= + [ – ]
=