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 Workday Inc. common stock.
Paying user area
Try for free
Workday Inc. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Net Profit Margin since 2013
- Return on Assets (ROA) since 2013
- Price to Operating Profit (P/OP) since 2013
- Price to Book Value (P/BV) since 2013
- 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 Workday Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Rates of Return
Workday Inc., monthly rates of return
| Workday Inc. (WDAY) | Standard & Poor’s 500 (S&P 500) | |||||
|---|---|---|---|---|---|---|
| t | Date | PriceWDAY,t1 | DividendWDAY,t1 | RWDAY,t2 | PriceS&P 500,t | RS&P 500,t3 |
| Feb 28, 2019 | ||||||
| 1. | Mar 31, 2019 | |||||
| 2. | Apr 30, 2019 | |||||
| 3. | May 31, 2019 | |||||
| . | . | . | . | . | . | . |
| . | . | . | . | . | . | . |
| . | . | . | . | . | . | . |
| 70. | Dec 31, 2024 | |||||
| 71. | Jan 31, 2025 | |||||
| Average (R): | ||||||
| Standard deviation: | ||||||
| Workday Inc. (WDAY) | Standard & Poor’s 500 (S&P 500) | |||||
|---|---|---|---|---|---|---|
| t | Date | PriceWDAY,t1 | DividendWDAY,t1 | RWDAY,t2 | PriceS&P 500,t | RS&P 500,t3 |
| Feb 28, 2019 | ||||||
| 1. | Mar 31, 2019 | |||||
| 2. | Apr 30, 2019 | |||||
| 3. | May 31, 2019 | |||||
| 4. | Jun 30, 2019 | |||||
| 5. | Jul 31, 2019 | |||||
| 6. | Aug 31, 2019 | |||||
| 7. | Sep 30, 2019 | |||||
| 8. | Oct 31, 2019 | |||||
| 9. | Nov 30, 2019 | |||||
| 10. | Dec 31, 2019 | |||||
| 11. | Jan 31, 2020 | |||||
| 12. | Feb 29, 2020 | |||||
| 13. | Mar 31, 2020 | |||||
| 14. | Apr 30, 2020 | |||||
| 15. | May 31, 2020 | |||||
| 16. | Jun 30, 2020 | |||||
| 17. | Jul 31, 2020 | |||||
| 18. | Aug 31, 2020 | |||||
| 19. | Sep 30, 2020 | |||||
| 20. | Oct 31, 2020 | |||||
| 21. | Nov 30, 2020 | |||||
| 22. | Dec 31, 2020 | |||||
| 23. | Jan 31, 2021 | |||||
| 24. | Feb 28, 2021 | |||||
| 25. | Mar 31, 2021 | |||||
| 26. | Apr 30, 2021 | |||||
| 27. | May 31, 2021 | |||||
| 28. | Jun 30, 2021 | |||||
| 29. | Jul 31, 2021 | |||||
| 30. | Aug 31, 2021 | |||||
| 31. | Sep 30, 2021 | |||||
| 32. | Oct 31, 2021 | |||||
| 33. | Nov 30, 2021 | |||||
| 34. | Dec 31, 2021 | |||||
| 35. | Jan 31, 2022 | |||||
| 36. | Feb 28, 2022 | |||||
| 37. | Mar 31, 2022 | |||||
| 38. | Apr 30, 2022 | |||||
| 39. | May 31, 2022 | |||||
| 40. | Jun 30, 2022 | |||||
| 41. | Jul 31, 2022 | |||||
| 42. | Aug 31, 2022 | |||||
| 43. | Sep 30, 2022 | |||||
| 44. | Oct 31, 2022 | |||||
| 45. | Nov 30, 2022 | |||||
| 46. | Dec 31, 2022 | |||||
| 47. | Jan 31, 2023 | |||||
| 48. | Feb 28, 2023 | |||||
| 49. | Mar 31, 2023 | |||||
| 50. | Apr 30, 2023 | |||||
| 51. | May 31, 2023 | |||||
| 52. | Jun 30, 2023 | |||||
| 53. | Jul 31, 2023 | |||||
| 54. | Aug 31, 2023 | |||||
| 55. | Sep 30, 2023 | |||||
| 56. | Oct 31, 2023 | |||||
| 57. | Nov 30, 2023 | |||||
| 58. | Dec 31, 2023 | |||||
| 59. | Jan 31, 2024 | |||||
| 60. | Feb 29, 2024 | |||||
| 61. | Mar 31, 2024 | |||||
| 62. | Apr 30, 2024 | |||||
| 63. | May 31, 2024 | |||||
| 64. | Jun 30, 2024 | |||||
| 65. | Jul 31, 2024 | |||||
| 66. | Aug 31, 2024 | |||||
| 67. | Sep 30, 2024 | |||||
| 68. | Oct 31, 2024 | |||||
| 69. | Nov 30, 2024 | |||||
| 70. | Dec 31, 2024 | |||||
| 71. | Jan 31, 2025 | |||||
| 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 WDAY during period t
3 Rate of return on S&P 500 (the market portfolio proxy) during period t
Variance and Covariance
Workday Inc., calculation of variance and covariance of returns
| t | Date | RWDAY,t | RS&P 500,t | (RWDAY,t–RWDAY)2 | (RS&P 500,t–RS&P 500)2 | (RWDAY,t–RWDAY)×(RS&P 500,t–RS&P 500) |
|---|---|---|---|---|---|---|
| 1. | Mar 31, 2019 | |||||
| 2. | Apr 30, 2019 | |||||
| 3. | May 31, 2019 | |||||
| . | . | . | . | . | . | . |
| . | . | . | . | . | . | . |
| . | . | . | . | . | . | . |
| 70. | Dec 31, 2024 | |||||
| 71. | Jan 31, 2025 | |||||
| Total (Σ): | ||||||
| t | Date | RWDAY,t | RS&P 500,t | (RWDAY,t–RWDAY)2 | (RS&P 500,t–RS&P 500)2 | (RWDAY,t–RWDAY)×(RS&P 500,t–RS&P 500) |
|---|---|---|---|---|---|---|
| 1. | Mar 31, 2019 | |||||
| 2. | Apr 30, 2019 | |||||
| 3. | May 31, 2019 | |||||
| 4. | Jun 30, 2019 | |||||
| 5. | Jul 31, 2019 | |||||
| 6. | Aug 31, 2019 | |||||
| 7. | Sep 30, 2019 | |||||
| 8. | Oct 31, 2019 | |||||
| 9. | Nov 30, 2019 | |||||
| 10. | Dec 31, 2019 | |||||
| 11. | Jan 31, 2020 | |||||
| 12. | Feb 29, 2020 | |||||
| 13. | Mar 31, 2020 | |||||
| 14. | Apr 30, 2020 | |||||
| 15. | May 31, 2020 | |||||
| 16. | Jun 30, 2020 | |||||
| 17. | Jul 31, 2020 | |||||
| 18. | Aug 31, 2020 | |||||
| 19. | Sep 30, 2020 | |||||
| 20. | Oct 31, 2020 | |||||
| 21. | Nov 30, 2020 | |||||
| 22. | Dec 31, 2020 | |||||
| 23. | Jan 31, 2021 | |||||
| 24. | Feb 28, 2021 | |||||
| 25. | Mar 31, 2021 | |||||
| 26. | Apr 30, 2021 | |||||
| 27. | May 31, 2021 | |||||
| 28. | Jun 30, 2021 | |||||
| 29. | Jul 31, 2021 | |||||
| 30. | Aug 31, 2021 | |||||
| 31. | Sep 30, 2021 | |||||
| 32. | Oct 31, 2021 | |||||
| 33. | Nov 30, 2021 | |||||
| 34. | Dec 31, 2021 | |||||
| 35. | Jan 31, 2022 | |||||
| 36. | Feb 28, 2022 | |||||
| 37. | Mar 31, 2022 | |||||
| 38. | Apr 30, 2022 | |||||
| 39. | May 31, 2022 | |||||
| 40. | Jun 30, 2022 | |||||
| 41. | Jul 31, 2022 | |||||
| 42. | Aug 31, 2022 | |||||
| 43. | Sep 30, 2022 | |||||
| 44. | Oct 31, 2022 | |||||
| 45. | Nov 30, 2022 | |||||
| 46. | Dec 31, 2022 | |||||
| 47. | Jan 31, 2023 | |||||
| 48. | Feb 28, 2023 | |||||
| 49. | Mar 31, 2023 | |||||
| 50. | Apr 30, 2023 | |||||
| 51. | May 31, 2023 | |||||
| 52. | Jun 30, 2023 | |||||
| 53. | Jul 31, 2023 | |||||
| 54. | Aug 31, 2023 | |||||
| 55. | Sep 30, 2023 | |||||
| 56. | Oct 31, 2023 | |||||
| 57. | Nov 30, 2023 | |||||
| 58. | Dec 31, 2023 | |||||
| 59. | Jan 31, 2024 | |||||
| 60. | Feb 29, 2024 | |||||
| 61. | Mar 31, 2024 | |||||
| 62. | Apr 30, 2024 | |||||
| 63. | May 31, 2024 | |||||
| 64. | Jun 30, 2024 | |||||
| 65. | Jul 31, 2024 | |||||
| 66. | Aug 31, 2024 | |||||
| 67. | Sep 30, 2024 | |||||
| 68. | Oct 31, 2024 | |||||
| 69. | Nov 30, 2024 | |||||
| 70. | Dec 31, 2024 | |||||
| 71. | Jan 31, 2025 | |||||
| Total (Σ): | ||||||
Show all
VarianceWDAY = Σ(RWDAY,t–RWDAY)2 ÷ (71 – 1)
= ÷ (71 – 1)
=
VarianceS&P 500 = Σ(RS&P 500,t–RS&P 500)2 ÷ (71 – 1)
= ÷ (71 – 1)
=
CovarianceWDAY, S&P 500 = Σ(RWDAY,t–RWDAY)×(RS&P 500,t–RS&P 500) ÷ (71 – 1)
= ÷ (71 – 1)
=
Systematic Risk (β) Estimation
| VarianceWDAY | |
| VarianceS&P 500 | |
| CovarianceWDAY, S&P 500 | |
| Correlation coefficientWDAY, S&P 5001 | |
| βWDAY2 | |
| αWDAY3 |
Calculations
1 Correlation coefficientWDAY, S&P 500
= CovarianceWDAY, S&P 500 ÷ (Standard deviationWDAY × Standard deviationS&P 500)
= ÷ ( × )
=
2 βWDAY
= CovarianceWDAY, S&P 500 ÷ VarianceS&P 500
= ÷
=
3 αWDAY
= AverageWDAY – βWDAY × 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 Workday Inc. common stock | βWDAY | |
| Expected rate of return on Workday Inc. common stock3 | E(RWDAY) | |
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(RWDAY) = RF + βWDAY [E(RM) – RF]
= + [ – ]
=