Stock Analysis on Net

Becton, Dickinson & Co. (NYSE:BDX)

This company has been moved to the archive! The financial data has not been updated since May 5, 2022.

Capital Asset Pricing Model (CAPM)

Microsoft Excel

Rates of Return

Becton, Dickinson & Co., monthly rates of return

Microsoft Excel
Becton, Dickinson & Co. (BDX) Standard & Poor’s 500 (S&P 500)
t Date PriceBDX,t1 DividendBDX,t1 RBDX,t2 PriceS&P 500,t RS&P 500,t3
Oct 31, 2015 $142.52 2,079.36
1. Nov 30, 2015 $150.25 5.42% 2,080.41 0.05%
2. Dec 31, 2015 $154.09 $0.66 3.00% 2,043.94 -1.75%
3. Jan 31, 2016 $145.37 -5.66% 1,940.24 -5.07%
. . . . . . .
. . . . . . .
. . . . . . .
70. Aug 31, 2021 $251.70 -1.58% 4,522.68 2.90%
71. Sep 30, 2021 $245.82 $0.83 -2.01% 4,307.54 -4.76%
Average (R): 1.06% 1.12%
Standard deviation: 5.86% 4.19%
Becton, Dickinson & Co. (BDX) Standard & Poor’s 500 (S&P 500)
t Date PriceBDX,t1 DividendBDX,t1 RBDX,t2 PriceS&P 500,t RS&P 500,t3
Oct 31, 2015 $142.52 2,079.36
1. Nov 30, 2015 $150.25 5.42% 2,080.41 0.05%
2. Dec 31, 2015 $154.09 $0.66 3.00% 2,043.94 -1.75%
3. Jan 31, 2016 $145.37 -5.66% 1,940.24 -5.07%
4. Feb 29, 2016 $147.45 1.43% 1,932.23 -0.41%
5. Mar 31, 2016 $151.82 $0.66 3.41% 2,059.74 6.60%
6. Apr 30, 2016 $161.26 6.22% 2,065.30 0.27%
7. May 31, 2016 $166.45 3.22% 2,096.95 1.53%
8. Jun 30, 2016 $169.59 $0.66 2.28% 2,098.86 0.09%
9. Jul 31, 2016 $176.00 3.78% 2,173.60 3.56%
10. Aug 31, 2016 $177.21 0.69% 2,170.95 -0.12%
11. Sep 30, 2016 $179.73 $0.66 1.79% 2,168.27 -0.12%
12. Oct 31, 2016 $167.91 -6.58% 2,126.15 -1.94%
13. Nov 30, 2016 $169.10 0.71% 2,198.81 3.42%
14. Dec 31, 2016 $165.55 $0.73 -1.67% 2,238.83 1.82%
15. Jan 31, 2017 $177.29 7.09% 2,278.87 1.79%
16. Feb 28, 2017 $183.05 3.25% 2,363.64 3.72%
17. Mar 31, 2017 $183.44 $0.73 0.61% 2,362.72 -0.04%
18. Apr 30, 2017 $186.97 1.92% 2,384.20 0.91%
19. May 31, 2017 $189.23 1.21% 2,411.80 1.16%
20. Jun 30, 2017 $195.11 $0.73 3.49% 2,423.41 0.48%
21. Jul 31, 2017 $201.40 3.22% 2,470.30 1.93%
22. Aug 31, 2017 $199.44 -0.97% 2,471.65 0.05%
23. Sep 30, 2017 $195.95 $0.73 -1.38% 2,519.36 1.93%
24. Oct 31, 2017 $208.67 6.49% 2,575.26 2.22%
25. Nov 30, 2017 $228.21 9.36% 2,647.58 2.81%
26. Dec 31, 2017 $214.06 $0.75 -5.87% 2,673.61 0.98%
27. Jan 31, 2018 $242.94 13.49% 2,823.81 5.62%
28. Feb 28, 2018 $222.02 -8.61% 2,713.83 -3.89%
29. Mar 31, 2018 $216.70 $0.75 -2.06% 2,640.87 -2.69%
30. Apr 30, 2018 $231.87 7.00% 2,648.05 0.27%
31. May 31, 2018 $221.59 -4.43% 2,705.27 2.16%
32. Jun 30, 2018 $239.56 $0.75 8.45% 2,718.37 0.48%
33. Jul 31, 2018 $250.37 4.51% 2,816.29 3.60%
34. Aug 31, 2018 $261.87 4.59% 2,901.52 3.03%
35. Sep 30, 2018 $261.00 $0.75 -0.05% 2,913.98 0.43%
36. Oct 31, 2018 $230.50 -11.69% 2,711.74 -6.94%
37. Nov 30, 2018 $252.75 9.65% 2,760.17 1.79%
38. Dec 31, 2018 $225.32 $0.77 -10.55% 2,506.85 -9.18%
39. Jan 31, 2019 $249.46 10.71% 2,704.10 7.87%
40. Feb 28, 2019 $248.79 -0.27% 2,784.49 2.97%
41. Mar 31, 2019 $249.73 $0.77 0.69% 2,834.40 1.79%
42. Apr 30, 2019 $240.74 -3.60% 2,945.83 3.93%
43. May 31, 2019 $233.44 -3.03% 2,752.06 -6.58%
44. Jun 30, 2019 $252.01 $0.77 8.28% 2,941.76 6.89%
45. Jul 31, 2019 $252.80 0.31% 2,980.38 1.31%
46. Aug 31, 2019 $253.92 0.44% 2,926.46 -1.81%
47. Sep 30, 2019 $252.96 $0.77 -0.07% 2,976.74 1.72%
48. Oct 31, 2019 $256.00 1.20% 3,037.56 2.04%
49. Nov 30, 2019 $258.50 0.98% 3,140.98 3.40%
50. Dec 31, 2019 $271.97 $0.79 5.52% 3,230.78 2.86%
51. Jan 31, 2020 $275.18 1.18% 3,225.52 -0.16%
52. Feb 29, 2020 $237.82 -13.58% 2,954.22 -8.41%
53. Mar 31, 2020 $229.77 $0.79 -3.05% 2,584.59 -12.51%
54. Apr 30, 2020 $252.53 9.91% 2,912.43 12.68%
55. May 31, 2020 $246.93 -2.22% 3,044.31 4.53%
56. Jun 30, 2020 $239.27 $0.79 -2.78% 3,100.29 1.84%
57. Jul 31, 2020 $281.34 17.58% 3,271.12 5.51%
58. Aug 31, 2020 $242.77 -13.71% 3,500.31 7.01%
59. Sep 30, 2020 $232.68 $0.79 -3.83% 3,363.00 -3.92%
60. Oct 31, 2020 $231.13 -0.67% 3,269.96 -2.77%
61. Nov 30, 2020 $234.84 1.61% 3,621.63 10.75%
62. Dec 31, 2020 $250.22 $0.83 6.90% 3,756.07 3.71%
63. Jan 31, 2021 $261.79 4.62% 3,714.24 -1.11%
64. Feb 28, 2021 $241.15 -7.88% 3,811.15 2.61%
65. Mar 31, 2021 $243.15 $0.83 1.17% 3,972.89 4.24%
66. Apr 30, 2021 $248.81 2.33% 4,181.17 5.24%
67. May 31, 2021 $241.89 -2.78% 4,204.11 0.55%
68. Jun 30, 2021 $243.19 $0.83 0.88% 4,297.50 2.22%
69. Jul 31, 2021 $255.75 5.16% 4,395.26 2.27%
70. Aug 31, 2021 $251.70 -1.58% 4,522.68 2.90%
71. Sep 30, 2021 $245.82 $0.83 -2.01% 4,307.54 -4.76%
Average (R): 1.06% 1.12%
Standard deviation: 5.86% 4.19%

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 BDX during period t

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


Variance and Covariance

Becton, Dickinson & Co., calculation of variance and covariance of returns

Microsoft Excel
t Date RBDX,t RS&P 500,t (RBDX,tRBDX)2 (RS&P 500,tRS&P 500)2 (RBDX,tRBDX)×(RS&P 500,tRS&P 500)
1. Nov 30, 2015 5.42% 0.05% 19.05 1.14 -4.66
2. Dec 31, 2015 3.00% -1.75% 3.75 8.24 -5.56
3. Jan 31, 2016 -5.66% -5.07% 45.14 38.33 41.60
. . . . . . .
. . . . . . .
. . . . . . .
70. Aug 31, 2021 -1.58% 2.90% 6.98 3.17 -4.71
71. Sep 30, 2021 -2.01% -4.76% 9.40 34.51 18.01
Total (Σ): 2,401.77 1,226.33 898.82
t Date RBDX,t RS&P 500,t (RBDX,tRBDX)2 (RS&P 500,tRS&P 500)2 (RBDX,tRBDX)×(RS&P 500,tRS&P 500)
1. Nov 30, 2015 5.42% 0.05% 19.05 1.14 -4.66
2. Dec 31, 2015 3.00% -1.75% 3.75 8.24 -5.56
3. Jan 31, 2016 -5.66% -5.07% 45.14 38.33 41.60
4. Feb 29, 2016 1.43% -0.41% 0.14 2.34 -0.57
5. Mar 31, 2016 3.41% 6.60% 5.53 30.04 12.89
6. Apr 30, 2016 6.22% 0.27% 26.61 0.72 -4.37
7. May 31, 2016 3.22% 1.53% 4.66 0.17 0.89
8. Jun 30, 2016 2.28% 0.09% 1.50 1.05 -1.26
9. Jul 31, 2016 3.78% 3.56% 7.40 5.97 6.65
10. Aug 31, 2016 0.69% -0.12% 0.14 1.54 0.46
11. Sep 30, 2016 1.79% -0.12% 0.54 1.54 -0.91
12. Oct 31, 2016 -6.58% -1.94% 58.31 9.37 23.37
13. Nov 30, 2016 0.71% 3.42% 0.12 5.29 -0.81
14. Dec 31, 2016 -1.67% 1.82% 7.44 0.49 -1.91
15. Jan 31, 2017 7.09% 1.79% 36.39 0.45 4.04
16. Feb 28, 2017 3.25% 3.72% 4.79 6.77 5.70
17. Mar 31, 2017 0.61% -0.04% 0.20 1.34 0.52
18. Apr 30, 2017 1.92% 0.91% 0.75 0.04 -0.18
19. May 31, 2017 1.21% 1.16% 0.02 0.00 0.01
20. Jun 30, 2017 3.49% 0.48% 5.92 0.41 -1.55
21. Jul 31, 2017 3.22% 1.93% 4.69 0.67 1.77
22. Aug 31, 2017 -0.97% 0.05% 4.13 1.13 2.16
23. Sep 30, 2017 -1.38% 1.93% 5.97 0.66 -1.98
24. Oct 31, 2017 6.49% 2.22% 29.51 1.21 5.98
25. Nov 30, 2017 9.36% 2.81% 68.97 2.86 14.04
26. Dec 31, 2017 -5.87% 0.98% 48.04 0.02 0.93
27. Jan 31, 2018 13.49% 5.62% 154.56 20.25 55.94
28. Feb 28, 2018 -8.61% -3.89% 93.52 25.13 48.48
29. Mar 31, 2018 -2.06% -2.69% 9.72 14.49 11.87
30. Apr 30, 2018 7.00% 0.27% 35.30 0.72 -5.03
31. May 31, 2018 -4.43% 2.16% 30.17 1.09 -5.73
32. Jun 30, 2018 8.45% 0.48% 54.59 0.40 -4.68
33. Jul 31, 2018 4.51% 3.60% 11.92 6.17 8.58
34. Aug 31, 2018 4.59% 3.03% 12.49 3.64 6.74
35. Sep 30, 2018 -0.05% 0.43% 1.22 0.47 0.76
36. Oct 31, 2018 -11.69% -6.94% 162.44 64.94 102.70
37. Nov 30, 2018 9.65% 1.79% 73.85 0.45 5.74
38. Dec 31, 2018 -10.55% -9.18% 134.73 106.00 119.50
39. Jan 31, 2019 10.71% 7.87% 93.21 45.57 65.17
40. Feb 28, 2019 -0.27% 2.97% 1.76 3.44 -2.46
41. Mar 31, 2019 0.69% 1.79% 0.14 0.45 -0.25
42. Apr 30, 2019 -3.60% 3.93% 21.71 7.92 -13.11
43. May 31, 2019 -3.03% -6.58% 16.74 59.22 31.49
44. Jun 30, 2019 8.28% 6.89% 52.21 33.35 41.73
45. Jul 31, 2019 0.31% 1.31% 0.56 0.04 -0.15
46. Aug 31, 2019 0.44% -1.81% 0.38 8.57 1.80
47. Sep 30, 2019 -0.07% 1.72% 1.29 0.36 -0.68
48. Oct 31, 2019 1.20% 2.04% 0.02 0.86 0.13
49. Nov 30, 2019 0.98% 3.40% 0.01 5.23 -0.19
50. Dec 31, 2019 5.52% 2.86% 19.87 3.03 7.76
51. Jan 31, 2020 1.18% -0.16% 0.01 1.64 -0.15
52. Feb 29, 2020 -13.58% -8.41% 214.21 90.80 139.47
53. Mar 31, 2020 -3.05% -12.51% 16.91 185.77 56.05
54. Apr 30, 2020 9.91% 12.68% 78.26 133.78 102.32
55. May 31, 2020 -2.22% 4.53% 10.74 11.63 -11.17
56. Jun 30, 2020 -2.78% 1.84% 14.76 0.52 -2.77
57. Jul 31, 2020 17.58% 5.51% 273.02 19.29 72.57
58. Aug 31, 2020 -13.71% 7.01% 218.11 34.67 -86.97
59. Sep 30, 2020 -3.83% -3.92% 23.91 25.41 24.65
60. Oct 31, 2020 -0.67% -2.77% 2.98 15.09 6.70
61. Nov 30, 2020 1.61% 10.75% 0.30 92.86 5.26
62. Dec 31, 2020 6.90% 3.71% 34.14 6.73 15.16
63. Jan 31, 2021 4.62% -1.11% 12.71 4.98 -7.96
64. Feb 28, 2021 -7.88% 2.61% 79.99 2.22 -13.34
65. Mar 31, 2021 1.17% 4.24% 0.01 9.77 0.36
66. Apr 30, 2021 2.33% 5.24% 1.61 17.01 5.23
67. May 31, 2021 -2.78% 0.55% 14.75 0.32 2.19
68. Jun 30, 2021 0.88% 2.22% 0.03 1.22 -0.20
69. Jul 31, 2021 5.16% 2.27% 16.85 1.34 4.75
70. Aug 31, 2021 -1.58% 2.90% 6.98 3.17 -4.71
71. Sep 30, 2021 -2.01% -4.76% 9.40 34.51 18.01
Total (Σ): 2,401.77 1,226.33 898.82

Show all

VarianceBDX = Σ(RBDX,tRBDX)2 ÷ (71 – 1)
= 2,401.77 ÷ (71 – 1)
= 34.31

VarianceS&P 500 = Σ(RS&P 500,tRS&P 500)2 ÷ (71 – 1)
= 1,226.33 ÷ (71 – 1)
= 17.52

CovarianceBDX, S&P 500 = Σ(RBDX,tRBDX)×(RS&P 500,tRS&P 500) ÷ (71 – 1)
= 898.82 ÷ (71 – 1)
= 12.84


Systematic Risk (β) Estimation

Microsoft Excel
VarianceBDX 34.31
VarianceS&P 500 17.52
CovarianceBDX, S&P 500 12.84
Correlation coefficientBDX, S&P 5001 0.52
βBDX2 0.73
αBDX3 0.24%

Calculations

1 Correlation coefficientBDX, S&P 500
= CovarianceBDX, S&P 500 ÷ (Standard deviationBDX × Standard deviationS&P 500)
= 12.84 ÷ (5.86% × 4.19%)
= 0.52

2 βBDX
= CovarianceBDX, S&P 500 ÷ VarianceS&P 500
= 12.84 ÷ 17.52
= 0.73

3 αBDX
= AverageBDX – βBDX × AverageS&P 500
= 1.06%0.73 × 1.12%
= 0.24%


Expected Rate of Return

Microsoft Excel
Assumptions
Rate of return on LT Treasury Composite1 RF 4.67%
Expected rate of return on market portfolio2 E(RM) 13.79%
Systematic risk (β) of Becton, Dickinson & Co. common stock βBDX 0.73
 
Expected rate of return on Becton, Dickinson & Co. common stock3 E(RBDX) 11.35%

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(RBDX) = RF + βBDX [E(RM) – RF]
= 4.67% + 0.73 [13.79%4.67%]
= 11.35%