Stock Analysis on Net
Stock Analysis on Net

AutoZone Inc. (NYSE:AZO)

$22.49

This company has been moved to the archive! The financial data has not been updated since December 18, 2023.

Capital Asset Pricing Model (CAPM)

Microsoft Excel

Capital asset pricing model (CAPM) indicates what should be the expected or required rate of return on risky assets like AutoZone Inc. common stock.

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Rates of Return

AutoZone Inc., monthly rates of return

Microsoft Excel
AutoZone Inc. (AZO) Standard & Poor’s 500 (S&P 500)
t Date PriceAZO,t1 DividendAZO,t1 RAZO,t2 PriceS&P 500,t RS&P 500,t3
Sep 30, 2017
1. Oct 31, 2017
2. Nov 30, 2017
3. Dec 31, 2017
. . . . . . .
. . . . . . .
. . . . . . .
70. Jul 31, 2023
71. Aug 31, 2023
Average (R):
Standard deviation:
AutoZone Inc. (AZO) Standard & Poor’s 500 (S&P 500)
t Date PriceAZO,t1 DividendAZO,t1 RAZO,t2 PriceS&P 500,t RS&P 500,t3
Sep 30, 2017
1. Oct 31, 2017
2. Nov 30, 2017
3. Dec 31, 2017
4. Jan 31, 2018
5. Feb 28, 2018
6. Mar 31, 2018
7. Apr 30, 2018
8. May 31, 2018
9. Jun 30, 2018
10. Jul 31, 2018
11. Aug 31, 2018
12. Sep 30, 2018
13. Oct 31, 2018
14. Nov 30, 2018
15. Dec 31, 2018
16. Jan 31, 2019
17. Feb 28, 2019
18. Mar 31, 2019
19. Apr 30, 2019
20. May 31, 2019
21. Jun 30, 2019
22. Jul 31, 2019
23. Aug 31, 2019
24. Sep 30, 2019
25. Oct 31, 2019
26. Nov 30, 2019
27. Dec 31, 2019
28. Jan 31, 2020
29. Feb 29, 2020
30. Mar 31, 2020
31. Apr 30, 2020
32. May 31, 2020
33. Jun 30, 2020
34. Jul 31, 2020
35. Aug 31, 2020
36. Sep 30, 2020
37. Oct 31, 2020
38. Nov 30, 2020
39. Dec 31, 2020
40. Jan 31, 2021
41. Feb 28, 2021
42. Mar 31, 2021
43. Apr 30, 2021
44. May 31, 2021
45. Jun 30, 2021
46. Jul 31, 2021
47. Aug 31, 2021
48. Sep 30, 2021
49. Oct 31, 2021
50. Nov 30, 2021
51. Dec 31, 2021
52. Jan 31, 2022
53. Feb 28, 2022
54. Mar 31, 2022
55. Apr 30, 2022
56. May 31, 2022
57. Jun 30, 2022
58. Jul 31, 2022
59. Aug 31, 2022
60. Sep 30, 2022
61. Oct 31, 2022
62. Nov 30, 2022
63. Dec 31, 2022
64. Jan 31, 2023
65. Feb 28, 2023
66. Mar 31, 2023
67. Apr 30, 2023
68. May 31, 2023
69. Jun 30, 2023
70. Jul 31, 2023
71. Aug 31, 2023
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 AZO during period t

3 Rate of return on S&P 500 (the market portfolio proxy) during period t

Variance and Covariance

AutoZone Inc., calculation of variance and covariance of returns

Microsoft Excel
t Date RAZO,t RS&P 500,t (RAZO,t–RAZO)2 (RS&P 500,t–RS&P 500)2 (RAZO,t–RAZO)×(RS&P 500,t–RS&P 500)
1. Oct 31, 2017
2. Nov 30, 2017
3. Dec 31, 2017
. . . . . . .
. . . . . . .
. . . . . . .
70. Jul 31, 2023
71. Aug 31, 2023
Total (Σ):
t Date RAZO,t RS&P 500,t (RAZO,t–RAZO)2 (RS&P 500,t–RS&P 500)2 (RAZO,t–RAZO)×(RS&P 500,t–RS&P 500)
1. Oct 31, 2017
2. Nov 30, 2017
3. Dec 31, 2017
4. Jan 31, 2018
5. Feb 28, 2018
6. Mar 31, 2018
7. Apr 30, 2018
8. May 31, 2018
9. Jun 30, 2018
10. Jul 31, 2018
11. Aug 31, 2018
12. Sep 30, 2018
13. Oct 31, 2018
14. Nov 30, 2018
15. Dec 31, 2018
16. Jan 31, 2019
17. Feb 28, 2019
18. Mar 31, 2019
19. Apr 30, 2019
20. May 31, 2019
21. Jun 30, 2019
22. Jul 31, 2019
23. Aug 31, 2019
24. Sep 30, 2019
25. Oct 31, 2019
26. Nov 30, 2019
27. Dec 31, 2019
28. Jan 31, 2020
29. Feb 29, 2020
30. Mar 31, 2020
31. Apr 30, 2020
32. May 31, 2020
33. Jun 30, 2020
34. Jul 31, 2020
35. Aug 31, 2020
36. Sep 30, 2020
37. Oct 31, 2020
38. Nov 30, 2020
39. Dec 31, 2020
40. Jan 31, 2021
41. Feb 28, 2021
42. Mar 31, 2021
43. Apr 30, 2021
44. May 31, 2021
45. Jun 30, 2021
46. Jul 31, 2021
47. Aug 31, 2021
48. Sep 30, 2021
49. Oct 31, 2021
50. Nov 30, 2021
51. Dec 31, 2021
52. Jan 31, 2022
53. Feb 28, 2022
54. Mar 31, 2022
55. Apr 30, 2022
56. May 31, 2022
57. Jun 30, 2022
58. Jul 31, 2022
59. Aug 31, 2022
60. Sep 30, 2022
61. Oct 31, 2022
62. Nov 30, 2022
63. Dec 31, 2022
64. Jan 31, 2023
65. Feb 28, 2023
66. Mar 31, 2023
67. Apr 30, 2023
68. May 31, 2023
69. Jun 30, 2023
70. Jul 31, 2023
71. Aug 31, 2023
Total (Σ):

Show all

VarianceAZO = Σ(RAZO,t–RAZO)2 ÷ (71 – 1)
= ÷ (71 – 1)
=

VarianceS&P 500 = Σ(RS&P 500,t–RS&P 500)2 ÷ (71 – 1)
= ÷ (71 – 1)
=

CovarianceAZO, S&P 500 = Σ(RAZO,t–RAZO)×(RS&P 500,t–RS&P 500) ÷ (71 – 1)
= ÷ (71 – 1)
=

Systematic Risk (β) Estimation

Microsoft Excel
VarianceAZO
VarianceS&P 500
CovarianceAZO, S&P 500
Correlation coefficientAZO, S&P 5001
βAZO2
αAZO3

Calculations

1 Correlation coefficientAZO, S&P 500
= CovarianceAZO, S&P 500 ÷ (Standard deviationAZO × Standard deviationS&P 500)
= ÷ ( × )
=

2 βAZO
= CovarianceAZO, S&P 500 ÷ VarianceS&P 500
= ÷
=

3 αAZO
= AverageAZO – βAZO × AverageS&P 500
= – ×
=

Expected Rate of Return

Microsoft Excel
Assumptions
Rate of return on LT Treasury Composite1 RF
Expected rate of return on market portfolio2 E(RM)
Systematic risk (β) of AutoZone Inc. common stock βAZO
 
Expected rate of return on AutoZone Inc. common stock3 E(RAZO)

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).

2 See details »

3 E(RAZO) = RF + βAZO [E(RM) – RF]
= + [ – ]
=