Stock Analysis on Net

Kimberly-Clark Corp. (NYSE:KMB)

This company has been moved to the archive! The financial data has not been updated since April 23, 2021.

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 Kimberly-Clark Corp. common stock.


Rates of Return

Kimberly-Clark Corp., monthly rates of return

Microsoft Excel
Kimberly-Clark Corp. (KMB) Standard & Poor’s 500 (S&P 500)
t Date PriceKMB,t1 DividendKMB,t1 RKMB,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2016 $128.42 1,940.24
1. Feb 29, 2016 $130.30 1.46% 1,932.23 -0.41%
2. Mar 31, 2016 $134.51 $0.92 3.94% 2,059.74 6.60%
3. Apr 30, 2016 $125.19 -6.93% 2,065.30 0.27%
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2020 $139.31 5.07% 3,621.63 10.75%
59. Dec 31, 2020 $134.83 $1.07 -2.45% 3,756.07 3.71%
Average (R): 0.47% 1.22%
Standard deviation: 4.97% 4.36%
Kimberly-Clark Corp. (KMB) Standard & Poor’s 500 (S&P 500)
t Date PriceKMB,t1 DividendKMB,t1 RKMB,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2016 $128.42 1,940.24
1. Feb 29, 2016 $130.30 1.46% 1,932.23 -0.41%
2. Mar 31, 2016 $134.51 $0.92 3.94% 2,059.74 6.60%
3. Apr 30, 2016 $125.19 -6.93% 2,065.30 0.27%
4. May 31, 2016 $127.04 1.48% 2,096.95 1.53%
5. Jun 30, 2016 $137.48 $0.92 8.94% 2,098.86 0.09%
6. Jul 31, 2016 $129.55 -5.77% 2,173.60 3.56%
7. Aug 31, 2016 $128.06 -1.15% 2,170.95 -0.12%
8. Sep 30, 2016 $126.14 $0.92 -0.78% 2,168.27 -0.12%
9. Oct 31, 2016 $114.41 -9.30% 2,126.15 -1.94%
10. Nov 30, 2016 $115.61 1.05% 2,198.81 3.42%
11. Dec 31, 2016 $114.12 $0.92 -0.49% 2,238.83 1.82%
12. Jan 31, 2017 $121.13 6.14% 2,278.87 1.79%
13. Feb 28, 2017 $132.55 9.43% 2,363.64 3.72%
14. Mar 31, 2017 $131.63 $0.97 0.04% 2,362.72 -0.04%
15. Apr 30, 2017 $129.75 -1.43% 2,384.20 0.91%
16. May 31, 2017 $129.73 -0.02% 2,411.80 1.16%
17. Jun 30, 2017 $129.11 $0.97 0.27% 2,423.41 0.48%
18. Jul 31, 2017 $123.16 -4.61% 2,470.30 1.93%
19. Aug 31, 2017 $123.29 0.11% 2,471.65 0.05%
20. Sep 30, 2017 $117.68 $0.97 -3.76% 2,519.36 1.93%
21. Oct 31, 2017 $112.51 -4.39% 2,575.26 2.22%
22. Nov 30, 2017 $119.76 6.44% 2,647.58 2.81%
23. Dec 31, 2017 $120.66 $0.97 1.56% 2,673.61 0.98%
24. Jan 31, 2018 $117.00 -3.03% 2,823.81 5.62%
25. Feb 28, 2018 $110.92 -5.20% 2,713.83 -3.89%
26. Mar 31, 2018 $110.13 $1.00 0.19% 2,640.87 -2.69%
27. Apr 30, 2018 $103.54 -5.98% 2,648.05 0.27%
28. May 31, 2018 $100.85 -2.60% 2,705.27 2.16%
29. Jun 30, 2018 $105.34 $1.00 5.44% 2,718.37 0.48%
30. Jul 31, 2018 $113.86 8.09% 2,816.29 3.60%
31. Aug 31, 2018 $115.54 1.48% 2,901.52 3.03%
32. Sep 30, 2018 $113.64 $1.00 -0.78% 2,913.98 0.43%
33. Oct 31, 2018 $104.30 -8.22% 2,711.74 -6.94%
34. Nov 30, 2018 $115.37 10.61% 2,760.17 1.79%
35. Dec 31, 2018 $113.94 $1.00 -0.37% 2,506.85 -9.18%
36. Jan 31, 2019 $111.38 -2.25% 2,704.10 7.87%
37. Feb 28, 2019 $116.83 4.89% 2,784.49 2.97%
38. Mar 31, 2019 $123.90 $1.03 6.93% 2,834.40 1.79%
39. Apr 30, 2019 $128.38 3.62% 2,945.83 3.93%
40. May 31, 2019 $127.89 -0.38% 2,752.06 -6.58%
41. Jun 30, 2019 $133.28 $1.03 5.02% 2,941.76 6.89%
42. Jul 31, 2019 $135.65 1.78% 2,980.38 1.31%
43. Aug 31, 2019 $141.11 4.03% 2,926.46 -1.81%
44. Sep 30, 2019 $142.05 $1.03 1.40% 2,976.74 1.72%
45. Oct 31, 2019 $132.88 -6.46% 3,037.56 2.04%
46. Nov 30, 2019 $136.34 2.60% 3,140.98 3.40%
47. Dec 31, 2019 $137.55 $1.03 1.64% 3,230.78 2.86%
48. Jan 31, 2020 $143.24 4.14% 3,225.52 -0.16%
49. Feb 29, 2020 $131.19 -8.41% 2,954.22 -8.41%
50. Mar 31, 2020 $127.87 $1.07 -1.72% 2,584.59 -12.51%
51. Apr 30, 2020 $138.48 8.30% 2,912.43 12.68%
52. May 31, 2020 $141.44 2.14% 3,044.31 4.53%
53. Jun 30, 2020 $141.35 $1.07 0.69% 3,100.29 1.84%
54. Jul 31, 2020 $152.04 7.56% 3,271.12 5.51%
55. Aug 31, 2020 $157.76 3.76% 3,500.31 7.01%
56. Sep 30, 2020 $147.66 $1.07 -5.72% 3,363.00 -3.92%
57. Oct 31, 2020 $132.59 -10.21% 3,269.96 -2.77%
58. Nov 30, 2020 $139.31 5.07% 3,621.63 10.75%
59. Dec 31, 2020 $134.83 $1.07 -2.45% 3,756.07 3.71%
Average (R): 0.47% 1.22%
Standard deviation: 4.97% 4.36%

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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 KMB during period t

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


Variance and Covariance

Kimberly-Clark Corp., calculation of variance and covariance of returns

Microsoft Excel
t Date RKMB,t RS&P 500,t (RKMB,tRKMB)2 (RS&P 500,tRS&P 500)2 (RKMB,tRKMB)×(RS&P 500,tRS&P 500)
1. Feb 29, 2016 1.46% -0.41% 0.98 2.67 -1.62
2. Mar 31, 2016 3.94% 6.60% 12.01 28.93 18.64
3. Apr 30, 2016 -6.93% 0.27% 54.77 0.90 7.03
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2020 5.07% 10.75% 21.13 90.91 43.83
59. Dec 31, 2020 -2.45% 3.71% 8.52 6.21 -7.28
Total (Σ): 1,434.68 1,103.45 572.75
t Date RKMB,t RS&P 500,t (RKMB,tRKMB)2 (RS&P 500,tRS&P 500)2 (RKMB,tRKMB)×(RS&P 500,tRS&P 500)
1. Feb 29, 2016 1.46% -0.41% 0.98 2.67 -1.62
2. Mar 31, 2016 3.94% 6.60% 12.01 28.93 18.64
3. Apr 30, 2016 -6.93% 0.27% 54.77 0.90 7.03
4. May 31, 2016 1.48% 1.53% 1.01 0.10 0.31
5. Jun 30, 2016 8.94% 0.09% 71.75 1.27 -9.56
6. Jul 31, 2016 -5.77% 3.56% 38.94 5.48 -14.61
7. Aug 31, 2016 -1.15% -0.12% 2.63 1.80 2.18
8. Sep 30, 2016 -0.78% -0.12% 1.57 1.81 1.68
9. Oct 31, 2016 -9.30% -1.94% 95.47 10.00 30.90
10. Nov 30, 2016 1.05% 3.42% 0.33 4.83 1.27
11. Dec 31, 2016 -0.49% 1.82% 0.93 0.36 -0.58
12. Jan 31, 2017 6.14% 1.79% 32.16 0.32 3.22
13. Feb 28, 2017 9.43% 3.72% 80.21 6.25 22.39
14. Mar 31, 2017 0.04% -0.04% 0.19 1.59 0.55
15. Apr 30, 2017 -1.43% 0.91% 3.61 0.10 0.59
16. May 31, 2017 -0.02% 1.16% 0.24 0.00 0.03
17. Jun 30, 2017 0.27% 0.48% 0.04 0.55 0.15
18. Jul 31, 2017 -4.61% 1.93% 25.81 0.51 -3.63
19. Aug 31, 2017 0.11% 0.05% 0.13 1.36 0.43
20. Sep 30, 2017 -3.76% 1.93% 17.94 0.50 -3.01
21. Oct 31, 2017 -4.39% 2.22% 23.67 1.00 -4.86
22. Nov 30, 2017 6.44% 2.81% 35.67 2.52 9.48
23. Dec 31, 2017 1.56% 0.98% 1.19 0.06 -0.26
24. Jan 31, 2018 -3.03% 5.62% 12.29 19.34 -15.41
25. Feb 28, 2018 -5.20% -3.89% 32.13 26.16 28.99
26. Mar 31, 2018 0.19% -2.69% 0.08 15.28 1.10
27. Apr 30, 2018 -5.98% 0.27% 41.67 0.90 6.12
28. May 31, 2018 -2.60% 2.16% 9.42 0.89 -2.89
29. Jun 30, 2018 5.44% 0.48% 24.72 0.54 -3.66
30. Jul 31, 2018 8.09% 3.60% 58.01 5.67 18.14
31. Aug 31, 2018 1.48% 3.03% 1.01 3.26 1.81
32. Sep 30, 2018 -0.78% 0.43% 1.56 0.63 0.99
33. Oct 31, 2018 -8.22% -6.94% 75.53 66.59 70.92
34. Nov 30, 2018 10.61% 1.79% 102.86 0.32 5.74
35. Dec 31, 2018 -0.37% -9.18% 0.71 108.11 8.78
36. Jan 31, 2019 -2.25% 7.87% 7.39 44.20 -18.07
37. Feb 28, 2019 4.89% 2.97% 19.55 3.07 7.75
38. Mar 31, 2019 6.93% 1.79% 41.75 0.33 3.70
39. Apr 30, 2019 3.62% 3.93% 9.89 7.35 8.52
40. May 31, 2019 -0.38% -6.58% 0.73 60.81 6.66
41. Jun 30, 2019 5.02% 6.89% 20.69 32.18 25.80
42. Jul 31, 2019 1.78% 1.31% 1.71 0.01 0.12
43. Aug 31, 2019 4.03% -1.81% 12.63 9.18 -10.76
44. Sep 30, 2019 1.40% 1.72% 0.85 0.25 0.46
45. Oct 31, 2019 -6.46% 2.04% 47.99 0.68 -5.70
46. Nov 30, 2019 2.60% 3.40% 4.55 4.77 4.66
47. Dec 31, 2019 1.64% 2.86% 1.37 2.69 1.92
48. Jan 31, 2020 4.14% -0.16% 13.43 1.91 -5.07
49. Feb 29, 2020 -8.41% -8.41% 78.93 92.76 85.56
50. Mar 31, 2020 -1.72% -12.51% 4.78 188.57 30.03
51. Apr 30, 2020 8.30% 12.68% 61.24 131.43 89.72
52. May 31, 2020 2.14% 4.53% 2.77 10.94 5.51
53. Jun 30, 2020 0.69% 1.84% 0.05 0.38 0.14
54. Jul 31, 2020 7.56% 5.51% 50.28 18.40 30.42
55. Aug 31, 2020 3.76% 7.01% 10.83 33.48 19.04
56. Sep 30, 2020 -5.72% -3.92% 38.39 26.45 31.86
57. Oct 31, 2020 -10.21% -2.77% 114.01 15.89 42.57
58. Nov 30, 2020 5.07% 10.75% 21.13 90.91 43.83
59. Dec 31, 2020 -2.45% 3.71% 8.52 6.21 -7.28
Total (Σ): 1,434.68 1,103.45 572.75

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VarianceKMB = Σ(RKMB,tRKMB)2 ÷ (59 – 1)
= 1,434.68 ÷ (59 – 1)
= 24.74

VarianceS&P 500 = Σ(RS&P 500,tRS&P 500)2 ÷ (59 – 1)
= 1,103.45 ÷ (59 – 1)
= 19.02

CovarianceKMB, S&P 500 = Σ(RKMB,tRKMB)×(RS&P 500,tRS&P 500) ÷ (59 – 1)
= 572.75 ÷ (59 – 1)
= 9.88


Systematic Risk (β) Estimation

Microsoft Excel
VarianceKMB 24.74
VarianceS&P 500 19.02
CovarianceKMB, S&P 500 9.88
Correlation coefficientKMB, S&P 5001 0.46
βKMB2 0.52
αKMB3 -0.16%

Calculations

1 Correlation coefficientKMB, S&P 500
= CovarianceKMB, S&P 500 ÷ (Standard deviationKMB × Standard deviationS&P 500)
= 9.88 ÷ (4.97% × 4.36%)
= 0.46

2 βKMB
= CovarianceKMB, S&P 500 ÷ VarianceS&P 500
= 9.88 ÷ 19.02
= 0.52

3 αKMB
= AverageKMB – βKMB × AverageS&P 500
= 0.47%0.52 × 1.22%
= -0.16%


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 Kimberly-Clark Corp. common stock βKMB 0.52
 
Expected rate of return on Kimberly-Clark Corp. common stock3 E(RKMB) 9.40%

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(RKMB) = RF + βKMB [E(RM) – RF]
= 4.67% + 0.52 [13.79%4.67%]
= 9.40%