Stock Analysis on Net

Kellanova (NYSE:K)

This company has been moved to the archive! The financial data has not been updated since August 1, 2024.

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 Kellanova common stock.


Rates of Return

Kellanova, monthly rates of return

Microsoft Excel
Kellanova (K) Standard & Poor’s 500 (S&P 500)
t Date PriceK,t1 DividendK,t1 RK,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2019 $59.01 2,704.10
1. Feb 28, 2019 $56.26 -4.66% 2,784.49 2.97%
2. Mar 31, 2019 $57.38 $0.56 2.99% 2,834.40 1.79%
3. Apr 30, 2019 $60.30 5.09% 2,945.83 3.93%
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2023 $52.54 $0.56 5.21% 4,567.80 8.92%
59. Dec 31, 2023 $55.91 6.41% 4,769.83 4.42%
Average (R): 0.36% 1.11%
Standard deviation: 5.31% 5.31%
Kellanova (K) Standard & Poor’s 500 (S&P 500)
t Date PriceK,t1 DividendK,t1 RK,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2019 $59.01 2,704.10
1. Feb 28, 2019 $56.26 -4.66% 2,784.49 2.97%
2. Mar 31, 2019 $57.38 $0.56 2.99% 2,834.40 1.79%
3. Apr 30, 2019 $60.30 5.09% 2,945.83 3.93%
4. May 31, 2019 $52.56 $0.56 -11.91% 2,752.06 -6.58%
5. Jun 30, 2019 $53.57 1.92% 2,941.76 6.89%
6. Jul 31, 2019 $58.22 8.68% 2,980.38 1.31%
7. Aug 31, 2019 $62.80 $0.57 8.85% 2,926.46 -1.81%
8. Sep 30, 2019 $64.35 2.47% 2,976.74 1.72%
9. Oct 31, 2019 $63.53 -1.27% 3,037.56 2.04%
10. Nov 30, 2019 $65.12 $0.57 3.40% 3,140.98 3.40%
11. Dec 31, 2019 $69.16 6.20% 3,230.78 2.86%
12. Jan 31, 2020 $68.21 -1.37% 3,225.52 -0.16%
13. Feb 29, 2020 $60.47 -11.35% 2,954.22 -8.41%
14. Mar 31, 2020 $59.99 $0.57 0.15% 2,584.59 -12.51%
15. Apr 30, 2020 $65.50 9.18% 2,912.43 12.68%
16. May 31, 2020 $65.31 $0.57 0.58% 3,044.31 4.53%
17. Jun 30, 2020 $66.06 1.15% 3,100.29 1.84%
18. Jul 31, 2020 $68.99 4.44% 3,271.12 5.51%
19. Aug 31, 2020 $70.91 $0.57 3.61% 3,500.31 7.01%
20. Sep 30, 2020 $64.59 -8.91% 3,363.00 -3.92%
21. Oct 31, 2020 $62.89 -2.63% 3,269.96 -2.77%
22. Nov 30, 2020 $63.91 $0.57 2.53% 3,621.63 10.75%
23. Dec 31, 2020 $62.23 -2.63% 3,756.07 3.71%
24. Jan 31, 2021 $58.94 -5.29% 3,714.24 -1.11%
25. Feb 28, 2021 $57.71 -2.09% 3,811.15 2.61%
26. Mar 31, 2021 $63.30 $0.57 10.67% 3,972.89 4.24%
27. Apr 30, 2021 $62.42 -1.39% 4,181.17 5.24%
28. May 31, 2021 $65.49 $0.58 5.85% 4,204.11 0.55%
29. Jun 30, 2021 $64.33 -1.77% 4,297.50 2.22%
30. Jul 31, 2021 $63.36 -1.51% 4,395.26 2.27%
31. Aug 31, 2021 $63.14 $0.58 0.57% 4,522.68 2.90%
32. Sep 30, 2021 $63.92 1.24% 4,307.54 -4.76%
33. Oct 31, 2021 $61.30 -4.10% 4,605.38 6.91%
34. Nov 30, 2021 $61.18 $0.58 0.75% 4,567.00 -0.83%
35. Dec 31, 2021 $64.42 5.30% 4,766.18 4.36%
36. Jan 31, 2022 $63.00 -2.20% 4,515.55 -5.26%
37. Feb 28, 2022 $63.94 $0.58 2.41% 4,373.94 -3.14%
38. Mar 31, 2022 $64.49 0.86% 4,530.41 3.58%
39. Apr 30, 2022 $68.50 6.22% 4,131.93 -8.80%
40. May 31, 2022 $69.74 $0.58 2.66% 4,132.15 0.01%
41. Jun 30, 2022 $71.34 2.29% 3,785.38 -8.39%
42. Jul 31, 2022 $73.92 3.62% 4,130.29 9.11%
43. Aug 31, 2022 $72.74 $0.59 -0.80% 3,955.00 -4.24%
44. Sep 30, 2022 $69.66 -4.23% 3,585.62 -9.34%
45. Oct 31, 2022 $76.82 10.28% 3,871.98 7.99%
46. Nov 30, 2022 $72.95 $0.59 -4.27% 4,080.11 5.38%
47. Dec 31, 2022 $71.24 -2.34% 3,839.50 -5.90%
48. Jan 31, 2023 $68.58 -3.73% 4,076.60 6.18%
49. Feb 28, 2023 $65.94 $0.59 -2.99% 3,970.15 -2.61%
50. Mar 31, 2023 $66.96 1.55% 4,109.31 3.51%
51. Apr 30, 2023 $69.77 4.20% 4,169.48 1.46%
52. May 31, 2023 $66.77 $0.59 -3.45% 4,179.83 0.25%
53. Jun 30, 2023 $67.40 0.94% 4,376.86 4.71%
54. Jul 31, 2023 $66.89 -0.76% 4,588.96 4.85%
55. Aug 31, 2023 $61.02 $0.60 -7.88% 4,507.66 -1.77%
56. Sep 30, 2023 $59.51 -2.47% 4,288.05 -4.87%
57. Oct 31, 2023 $50.47 -15.19% 4,193.80 -2.20%
58. Nov 30, 2023 $52.54 $0.56 5.21% 4,567.80 8.92%
59. Dec 31, 2023 $55.91 6.41% 4,769.83 4.42%
Average (R): 0.36% 1.11%
Standard deviation: 5.31% 5.31%

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1 Data in US$ per share of common stock, adjusted for splits and stock dividends.

2 Rate of return on common stock of K during period t

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


Variance and Covariance

Kellanova, calculation of variance and covariance of returns

Microsoft Excel
t Date RK,t RS&P 500,t (RK,tRK)2 (RS&P 500,tRS&P 500)2 (RK,tRK)×(RS&P 500,tRS&P 500)
1. Feb 28, 2019 -4.66% 2.97% 25.17 3.49 -9.37
2. Mar 31, 2019 2.99% 1.79% 6.91 0.47 1.81
3. Apr 30, 2019 5.09% 3.93% 22.39 7.98 13.37
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2023 5.21% 8.92% 23.56 61.03 37.92
59. Dec 31, 2023 6.41% 4.42% 36.69 11.00 20.09
Total (Σ): 1,636.89 1,634.30 667.29
t Date RK,t RS&P 500,t (RK,tRK)2 (RS&P 500,tRS&P 500)2 (RK,tRK)×(RS&P 500,tRS&P 500)
1. Feb 28, 2019 -4.66% 2.97% 25.17 3.49 -9.37
2. Mar 31, 2019 2.99% 1.79% 6.91 0.47 1.81
3. Apr 30, 2019 5.09% 3.93% 22.39 7.98 13.37
4. May 31, 2019 -11.91% -6.58% 150.40 59.04 94.23
5. Jun 30, 2019 1.92% 6.89% 2.45 33.49 9.06
6. Jul 31, 2019 8.68% 1.31% 69.28 0.04 1.72
7. Aug 31, 2019 8.85% -1.81% 72.06 8.50 -24.75
8. Sep 30, 2019 2.47% 1.72% 4.46 0.37 1.29
9. Oct 31, 2019 -1.27% 2.04% 2.66 0.88 -1.53
10. Nov 30, 2019 3.40% 3.40% 9.26 5.28 7.00
11. Dec 31, 2019 6.20% 2.86% 34.19 3.07 10.25
12. Jan 31, 2020 -1.37% -0.16% 2.99 1.61 2.20
13. Feb 29, 2020 -11.35% -8.41% 136.98 90.57 111.39
14. Mar 31, 2020 0.15% -12.51% 0.04 185.44 2.83
15. Apr 30, 2020 9.18% 12.68% 77.94 134.06 102.22
16. May 31, 2020 0.58% 4.53% 0.05 11.71 0.76
17. Jun 30, 2020 1.15% 1.84% 0.63 0.54 0.58
18. Jul 31, 2020 4.44% 5.51% 16.64 19.40 17.96
19. Aug 31, 2020 3.61% 7.01% 10.58 34.82 19.19
20. Sep 30, 2020 -8.91% -3.92% 85.92 25.29 46.61
21. Oct 31, 2020 -2.63% -2.77% 8.93 15.00 11.57
22. Nov 30, 2020 2.53% 10.75% 4.72 93.10 20.95
23. Dec 31, 2020 -2.63% 3.71% 8.91 6.79 -7.78
24. Jan 31, 2021 -5.29% -1.11% 31.85 4.93 12.53
25. Feb 28, 2021 -2.09% 2.61% 5.97 2.26 -3.67
26. Mar 31, 2021 10.67% 4.24% 106.45 9.85 32.38
27. Apr 30, 2021 -1.39% 5.24% 3.05 17.11 -7.23
28. May 31, 2021 5.85% 0.55% 30.15 0.31 -3.06
29. Jun 30, 2021 -1.77% 2.22% 4.53 1.24 -2.37
30. Jul 31, 2021 -1.51% 2.27% 3.48 1.37 -2.18
31. Aug 31, 2021 0.57% 2.90% 0.04 3.22 0.38
32. Sep 30, 2021 1.24% -4.76% 0.77 34.37 -5.15
33. Oct 31, 2021 -4.10% 6.91% 19.85 33.74 -25.88
34. Nov 30, 2021 0.75% -0.83% 0.16 3.76 -0.76
35. Dec 31, 2021 5.30% 4.36% 24.40 10.60 16.08
36. Jan 31, 2022 -2.20% -5.26% 6.56 40.51 16.30
37. Feb 28, 2022 2.41% -3.14% 4.23 17.99 -8.72
38. Mar 31, 2022 0.86% 3.58% 0.25 6.11 1.24
39. Apr 30, 2022 6.22% -8.80% 34.36 98.04 -58.04
40. May 31, 2022 2.66% 0.01% 5.29 1.21 -2.53
41. Jun 30, 2022 2.29% -8.39% 3.75 90.21 -18.40
42. Jul 31, 2022 3.62% 9.11% 10.63 64.09 26.10
43. Aug 31, 2022 -0.80% -4.24% 1.33 28.62 6.18
44. Sep 30, 2022 -4.23% -9.34% 21.08 109.11 47.95
45. Oct 31, 2022 10.28% 7.99% 98.44 47.34 68.27
46. Nov 30, 2022 -4.27% 5.38% 21.40 18.23 -19.75
47. Dec 31, 2022 -2.34% -5.90% 7.29 49.04 18.91
48. Jan 31, 2023 -3.73% 6.18% 16.73 25.70 -20.74
49. Feb 28, 2023 -2.99% -2.61% 11.19 13.82 12.44
50. Mar 31, 2023 1.55% 3.51% 1.42 5.76 2.86
51. Apr 30, 2023 4.20% 1.46% 14.74 0.13 1.38
52. May 31, 2023 -3.45% 0.25% 14.52 0.74 3.27
53. Jun 30, 2023 0.94% 4.71% 0.34 13.02 2.12
54. Jul 31, 2023 -0.76% 4.85% 1.24 13.99 -4.16
55. Aug 31, 2023 -7.88% -1.77% 67.82 8.28 23.70
56. Sep 30, 2023 -2.47% -4.87% 8.02 35.73 16.92
57. Oct 31, 2023 -15.19% -2.20% 241.72 10.92 51.37
58. Nov 30, 2023 5.21% 8.92% 23.56 61.03 37.92
59. Dec 31, 2023 6.41% 4.42% 36.69 11.00 20.09
Total (Σ): 1,636.89 1,634.30 667.29

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VarianceK = Σ(RK,tRK)2 ÷ (59 – 1)
= 1,636.89 ÷ (59 – 1)
= 28.22

VarianceS&P 500 = Σ(RS&P 500,tRS&P 500)2 ÷ (59 – 1)
= 1,634.30 ÷ (59 – 1)
= 28.18

CovarianceK, S&P 500 = Σ(RK,tRK)×(RS&P 500,tRS&P 500) ÷ (59 – 1)
= 667.29 ÷ (59 – 1)
= 11.51


Systematic Risk (β) Estimation

Microsoft Excel
VarianceK 28.22
VarianceS&P 500 28.18
CovarianceK, S&P 500 11.51
Correlation coefficientK, S&P 5001 0.41
βK2 0.41
αK3 -0.09%

Calculations

1 Correlation coefficientK, S&P 500
= CovarianceK, S&P 500 ÷ (Standard deviationK × Standard deviationS&P 500)
= 11.51 ÷ (5.31% × 5.31%)
= 0.41

2 βK
= CovarianceK, S&P 500 ÷ VarianceS&P 500
= 11.51 ÷ 28.18
= 0.41

3 αK
= AverageK – βK × AverageS&P 500
= 0.36%0.41 × 1.11%
= -0.09%


Expected Rate of Return

Microsoft Excel
Assumptions
Rate of return on LT Treasury Composite1 RF 4.68%
Expected rate of return on market portfolio2 E(RM) 13.78%
Systematic risk (β) of Kellanova common stock βK 0.41
 
Expected rate of return on Kellanova common stock3 E(RK) 8.40%

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(RK) = RF + βK [E(RM) – RF]
= 4.68% + 0.41 [13.78%4.68%]
= 8.40%