Stock Analysis on Net

Las Vegas Sands Corp. (NYSE:LVS)

This company has been moved to the archive! The financial data has not been updated since October 20, 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 Las Vegas Sands Corp. common stock.


Rates of Return

Las Vegas Sands Corp., monthly rates of return

Microsoft Excel
Las Vegas Sands Corp. (LVS) Standard & Poor’s 500 (S&P 500)
t Date PriceLVS,t1 DividendLVS,t1 RLVS,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2018 $77.52 2,823.81
1. Feb 28, 2018 $72.81 -6.08% 2,713.83 -3.89%
2. Mar 31, 2018 $71.90 $0.75 -0.22% 2,640.87 -2.69%
3. Apr 30, 2018 $73.33 1.99% 2,648.05 0.27%
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2022 $46.84 23.23% 4,080.11 5.38%
59. Dec 31, 2022 $48.07 2.63% 3,839.50 -5.90%
Average (R): -0.05% 0.67%
Standard deviation: 10.72% 5.40%
Las Vegas Sands Corp. (LVS) Standard & Poor’s 500 (S&P 500)
t Date PriceLVS,t1 DividendLVS,t1 RLVS,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2018 $77.52 2,823.81
1. Feb 28, 2018 $72.81 -6.08% 2,713.83 -3.89%
2. Mar 31, 2018 $71.90 $0.75 -0.22% 2,640.87 -2.69%
3. Apr 30, 2018 $73.33 1.99% 2,648.05 0.27%
4. May 31, 2018 $80.61 9.93% 2,705.27 2.16%
5. Jun 30, 2018 $76.36 $0.75 -4.34% 2,718.37 0.48%
6. Jul 31, 2018 $71.90 -5.84% 2,816.29 3.60%
7. Aug 31, 2018 $65.42 -9.01% 2,901.52 3.03%
8. Sep 30, 2018 $59.33 $0.75 -8.16% 2,913.98 0.43%
9. Oct 31, 2018 $51.03 -13.99% 2,711.74 -6.94%
10. Nov 30, 2018 $54.94 7.66% 2,760.17 1.79%
11. Dec 31, 2018 $52.05 $0.75 -3.90% 2,506.85 -9.18%
12. Jan 31, 2019 $58.36 12.12% 2,704.10 7.87%
13. Feb 28, 2019 $61.43 5.26% 2,784.49 2.97%
14. Mar 31, 2019 $60.96 $0.77 0.49% 2,834.40 1.79%
15. Apr 30, 2019 $67.05 9.99% 2,945.83 3.93%
16. May 31, 2019 $55.00 -17.97% 2,752.06 -6.58%
17. Jun 30, 2019 $59.09 $0.77 8.84% 2,941.76 6.89%
18. Jul 31, 2019 $60.44 2.28% 2,980.38 1.31%
19. Aug 31, 2019 $55.47 -8.22% 2,926.46 -1.81%
20. Sep 30, 2019 $57.76 $0.77 5.52% 2,976.74 1.72%
21. Oct 31, 2019 $61.84 7.06% 3,037.56 2.04%
22. Nov 30, 2019 $62.75 1.47% 3,140.98 3.40%
23. Dec 31, 2019 $69.04 $0.77 11.25% 3,230.78 2.86%
24. Jan 31, 2020 $65.31 -5.40% 3,225.52 -0.16%
25. Feb 29, 2020 $58.31 -10.72% 2,954.22 -8.41%
26. Mar 31, 2020 $42.47 $0.79 -25.81% 2,584.59 -12.51%
27. Apr 30, 2020 $48.02 13.07% 2,912.43 12.68%
28. May 31, 2020 $47.94 -0.17% 3,044.31 4.53%
29. Jun 30, 2020 $45.54 -5.01% 3,100.29 1.84%
30. Jul 31, 2020 $43.64 -4.17% 3,271.12 5.51%
31. Aug 31, 2020 $50.71 16.20% 3,500.31 7.01%
32. Sep 30, 2020 $46.66 -7.99% 3,363.00 -3.92%
33. Oct 31, 2020 $48.06 3.00% 3,269.96 -2.77%
34. Nov 30, 2020 $55.71 15.92% 3,621.63 10.75%
35. Dec 31, 2020 $59.60 6.98% 3,756.07 3.71%
36. Jan 31, 2021 $48.09 -19.31% 3,714.24 -1.11%
37. Feb 28, 2021 $62.60 30.17% 3,811.15 2.61%
38. Mar 31, 2021 $60.76 -2.94% 3,972.89 4.24%
39. Apr 30, 2021 $61.26 0.82% 4,181.17 5.24%
40. May 31, 2021 $57.75 -5.73% 4,204.11 0.55%
41. Jun 30, 2021 $52.69 -8.76% 4,297.50 2.22%
42. Jul 31, 2021 $42.35 -19.62% 4,395.26 2.27%
43. Aug 31, 2021 $44.61 5.34% 4,522.68 2.90%
44. Sep 30, 2021 $36.60 -17.96% 4,307.54 -4.76%
45. Oct 31, 2021 $38.81 6.04% 4,605.38 6.91%
46. Nov 30, 2021 $35.62 -8.22% 4,567.00 -0.83%
47. Dec 31, 2021 $37.64 5.67% 4,766.18 4.36%
48. Jan 31, 2022 $43.80 16.37% 4,515.55 -5.26%
49. Feb 28, 2022 $42.86 -2.15% 4,373.94 -3.14%
50. Mar 31, 2022 $38.87 -9.31% 4,530.41 3.58%
51. Apr 30, 2022 $35.43 -8.85% 4,131.93 -8.80%
52. May 31, 2022 $35.46 0.08% 4,132.15 0.01%
53. Jun 30, 2022 $33.59 -5.27% 3,785.38 -8.39%
54. Jul 31, 2022 $37.69 12.21% 4,130.29 9.11%
55. Aug 31, 2022 $37.63 -0.16% 3,955.00 -4.24%
56. Sep 30, 2022 $37.52 -0.29% 3,585.62 -9.34%
57. Oct 31, 2022 $38.01 1.31% 3,871.98 7.99%
58. Nov 30, 2022 $46.84 23.23% 4,080.11 5.38%
59. Dec 31, 2022 $48.07 2.63% 3,839.50 -5.90%
Average (R): -0.05% 0.67%
Standard deviation: 10.72% 5.40%

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 LVS during period t

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


Variance and Covariance

Las Vegas Sands Corp., calculation of variance and covariance of returns

Microsoft Excel
t Date RLVS,t RS&P 500,t (RLVS,tRLVS)2 (RS&P 500,tRS&P 500)2 (RLVS,tRLVS)×(RS&P 500,tRS&P 500)
1. Feb 28, 2018 -6.08% -3.89% 36.37 20.81 27.51
2. Mar 31, 2018 -0.22% -2.69% 0.03 11.26 0.59
3. Apr 30, 2018 1.99% 0.27% 4.14 0.16 -0.80
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2022 23.23% 5.38% 541.77 22.17 109.60
59. Dec 31, 2022 2.63% -5.90% 7.14 43.08 -17.53
Total (Σ): 6,665.35 1,691.48 1,873.27
t Date RLVS,t RS&P 500,t (RLVS,tRLVS)2 (RS&P 500,tRS&P 500)2 (RLVS,tRLVS)×(RS&P 500,tRS&P 500)
1. Feb 28, 2018 -6.08% -3.89% 36.37 20.81 27.51
2. Mar 31, 2018 -0.22% -2.69% 0.03 11.26 0.59
3. Apr 30, 2018 1.99% 0.27% 4.14 0.16 -0.80
4. May 31, 2018 9.93% 2.16% 99.46 2.23 14.90
5. Jun 30, 2018 -4.34% 0.48% 18.46 0.03 0.78
6. Jul 31, 2018 -5.84% 3.60% 33.59 8.62 -17.01
7. Aug 31, 2018 -9.01% 3.03% 80.41 5.57 -21.16
8. Sep 30, 2018 -8.16% 0.43% 65.89 0.06 1.93
9. Oct 31, 2018 -13.99% -6.94% 194.44 57.87 106.07
10. Nov 30, 2018 7.66% 1.79% 59.41 1.25 8.63
11. Dec 31, 2018 -3.90% -9.18% 14.82 96.91 37.90
12. Jan 31, 2019 12.12% 7.87% 148.07 51.87 87.63
13. Feb 28, 2019 5.26% 2.97% 28.15 5.32 12.24
14. Mar 31, 2019 0.49% 1.79% 0.28 1.27 0.60
15. Apr 30, 2019 9.99% 3.93% 100.71 10.66 32.76
16. May 31, 2019 -17.97% -6.58% 321.35 52.48 129.87
17. Jun 30, 2019 8.84% 6.89% 78.88 38.77 55.30
18. Jul 31, 2019 2.28% 1.31% 5.43 0.42 1.51
19. Aug 31, 2019 -8.22% -1.81% 66.87 6.13 20.25
20. Sep 30, 2019 5.52% 1.72% 30.93 1.11 5.85
21. Oct 31, 2019 7.06% 2.04% 50.54 1.89 9.79
22. Nov 30, 2019 1.47% 3.40% 2.30 7.50 4.15
23. Dec 31, 2019 11.25% 2.86% 127.61 4.81 24.77
24. Jan 31, 2020 -5.40% -0.16% 28.70 0.69 4.44
25. Feb 29, 2020 -10.72% -8.41% 113.91 82.40 96.88
26. Mar 31, 2020 -25.81% -12.51% 663.83 173.67 339.55
27. Apr 30, 2020 13.07% 12.68% 171.96 144.43 157.59
28. May 31, 2020 -0.17% 4.53% 0.01 14.91 -0.47
29. Jun 30, 2020 -5.01% 1.84% 24.61 1.37 -5.82
30. Jul 31, 2020 -4.17% 5.51% 17.03 23.46 -19.99
31. Aug 31, 2020 16.20% 7.01% 263.93 40.19 103.00
32. Sep 30, 2020 -7.99% -3.92% 63.06 21.06 36.45
33. Oct 31, 2020 3.00% -2.77% 9.28 11.79 -10.46
34. Nov 30, 2020 15.92% 10.75% 254.82 101.77 161.03
35. Dec 31, 2020 6.98% 3.71% 49.39 9.28 21.40
36. Jan 31, 2021 -19.31% -1.11% 371.21 3.17 34.30
37. Feb 28, 2021 30.17% 2.61% 913.12 3.77 58.70
38. Mar 31, 2021 -2.94% 4.24% 8.38 12.80 -10.35
39. Apr 30, 2021 0.82% 5.24% 0.75 20.94 3.97
40. May 31, 2021 -5.73% 0.55% 32.31 0.01 0.67
41. Jun 30, 2021 -8.76% 2.22% 75.98 2.42 -13.55
42. Jul 31, 2021 -19.62% 2.27% 383.33 2.59 -31.49
43. Aug 31, 2021 5.34% 2.90% 28.96 4.98 12.01
44. Sep 30, 2021 -17.96% -4.76% 320.78 29.42 97.14
45. Oct 31, 2021 6.04% 6.91% 37.01 39.03 38.01
46. Nov 30, 2021 -8.22% -0.83% 66.82 2.25 12.26
47. Dec 31, 2021 5.67% 4.36% 32.68 13.65 21.12
48. Jan 31, 2022 16.37% -5.26% 269.32 35.11 -97.24
49. Feb 28, 2022 -2.15% -3.14% 4.41 14.46 7.99
50. Mar 31, 2022 -9.31% 3.58% 85.82 8.47 -26.96
51. Apr 30, 2022 -8.85% -8.80% 77.52 89.54 83.31
52. May 31, 2022 0.08% 0.01% 0.02 0.44 -0.09
53. Jun 30, 2022 -5.27% -8.39% 27.33 82.06 47.36
54. Jul 31, 2022 12.21% 9.11% 150.10 71.32 103.46
55. Aug 31, 2022 -0.16% -4.24% 0.01 24.11 0.56
56. Sep 30, 2022 -0.29% -9.34% 0.06 100.12 2.47
57. Oct 31, 2022 1.31% 7.99% 1.83 53.58 9.89
58. Nov 30, 2022 23.23% 5.38% 541.77 22.17 109.60
59. Dec 31, 2022 2.63% -5.90% 7.14 43.08 -17.53
Total (Σ): 6,665.35 1,691.48 1,873.27

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VarianceLVS = Σ(RLVS,tRLVS)2 ÷ (59 – 1)
= 6,665.35 ÷ (59 – 1)
= 114.92

VarianceS&P 500 = Σ(RS&P 500,tRS&P 500)2 ÷ (59 – 1)
= 1,691.48 ÷ (59 – 1)
= 29.16

CovarianceLVS, S&P 500 = Σ(RLVS,tRLVS)×(RS&P 500,tRS&P 500) ÷ (59 – 1)
= 1,873.27 ÷ (59 – 1)
= 32.30


Systematic Risk (β) Estimation

Microsoft Excel
VarianceLVS 114.92
VarianceS&P 500 29.16
CovarianceLVS, S&P 500 32.30
Correlation coefficientLVS, S&P 5001 0.56
βLVS2 1.11
αLVS3 -0.78%

Calculations

1 Correlation coefficientLVS, S&P 500
= CovarianceLVS, S&P 500 ÷ (Standard deviationLVS × Standard deviationS&P 500)
= 32.30 ÷ (10.72% × 5.40%)
= 0.56

2 βLVS
= CovarianceLVS, S&P 500 ÷ VarianceS&P 500
= 32.30 ÷ 29.16
= 1.11

3 αLVS
= AverageLVS – βLVS × AverageS&P 500
= -0.05%1.11 × 0.67%
= -0.78%


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 Las Vegas Sands Corp. common stock βLVS 1.11
 
Expected rate of return on Las Vegas Sands Corp. common stock3 E(RLVS) 14.77%

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(RLVS) = RF + βLVS [E(RM) – RF]
= 4.67% + 1.11 [13.79%4.67%]
= 14.77%