Stock Analysis on Net

Abiomed Inc. (NASDAQ:ABMD)

This company has been moved to the archive! The financial data has not been updated since November 3, 2022.

Capital Asset Pricing Model (CAPM)

Microsoft Excel

Rates of Return

Abiomed Inc., monthly rates of return

Microsoft Excel
Abiomed Inc. (ABMD) Standard & Poor’s 500 (S&P 500)
t Date PriceABMD,t1 DividendABMD,t1 RABMD,t2 PriceS&P 500,t RS&P 500,t3
Apr 30, 2016 $97.14 2,065.30
1. May 31, 2016 $99.31 2.23% 2,096.95 1.53%
2. Jun 30, 2016 $109.29 10.05% 2,098.86 0.09%
3. Jul 31, 2016 $117.97 7.94% 2,173.60 3.56%
. . . . . . .
. . . . . . .
. . . . . . .
70. Feb 28, 2022 $310.74 5.03% 4,373.94 -3.14%
71. Mar 31, 2022 $331.24 6.60% 4,530.41 3.58%
Average (R): 2.44% 1.20%
Standard deviation: 11.78% 4.24%
Abiomed Inc. (ABMD) Standard & Poor’s 500 (S&P 500)
t Date PriceABMD,t1 DividendABMD,t1 RABMD,t2 PriceS&P 500,t RS&P 500,t3
Apr 30, 2016 $97.14 2,065.30
1. May 31, 2016 $99.31 2.23% 2,096.95 1.53%
2. Jun 30, 2016 $109.29 10.05% 2,098.86 0.09%
3. Jul 31, 2016 $117.97 7.94% 2,173.60 3.56%
4. Aug 31, 2016 $117.94 -0.03% 2,170.95 -0.12%
5. Sep 30, 2016 $128.58 9.02% 2,168.27 -0.12%
6. Oct 31, 2016 $104.99 -18.35% 2,126.15 -1.94%
7. Nov 30, 2016 $112.24 6.91% 2,198.81 3.42%
8. Dec 31, 2016 $112.68 0.39% 2,238.83 1.82%
9. Jan 31, 2017 $106.37 -5.60% 2,278.87 1.79%
10. Feb 28, 2017 $117.97 10.91% 2,363.64 3.72%
11. Mar 31, 2017 $125.20 6.13% 2,362.72 -0.04%
12. Apr 30, 2017 $130.32 4.09% 2,384.20 0.91%
13. May 31, 2017 $137.43 5.46% 2,411.80 1.16%
14. Jun 30, 2017 $143.30 4.27% 2,423.41 0.48%
15. Jul 31, 2017 $148.09 3.34% 2,470.30 1.93%
16. Aug 31, 2017 $150.80 1.83% 2,471.65 0.05%
17. Sep 30, 2017 $168.60 11.80% 2,519.36 1.93%
18. Oct 31, 2017 $192.92 14.42% 2,575.26 2.22%
19. Nov 30, 2017 $194.84 1.00% 2,647.58 2.81%
20. Dec 31, 2017 $187.41 -3.81% 2,673.61 0.98%
21. Jan 31, 2018 $235.00 25.39% 2,823.81 5.62%
22. Feb 28, 2018 $268.18 14.12% 2,713.83 -3.89%
23. Mar 31, 2018 $290.99 8.51% 2,640.87 -2.69%
24. Apr 30, 2018 $300.95 3.42% 2,648.05 0.27%
25. May 31, 2018 $381.14 26.65% 2,705.27 2.16%
26. Jun 30, 2018 $409.05 7.32% 2,718.37 0.48%
27. Jul 31, 2018 $354.53 -13.33% 2,816.29 3.60%
28. Aug 31, 2018 $406.58 14.68% 2,901.52 3.03%
29. Sep 30, 2018 $449.75 10.62% 2,913.98 0.43%
30. Oct 31, 2018 $341.20 -24.14% 2,711.74 -6.94%
31. Nov 30, 2018 $332.68 -2.50% 2,760.17 1.79%
32. Dec 31, 2018 $325.04 -2.30% 2,506.85 -9.18%
33. Jan 31, 2019 $351.07 8.01% 2,704.10 7.87%
34. Feb 28, 2019 $334.50 -4.72% 2,784.49 2.97%
35. Mar 31, 2019 $285.59 -14.62% 2,834.40 1.79%
36. Apr 30, 2019 $277.41 -2.86% 2,945.83 3.93%
37. May 31, 2019 $261.92 -5.58% 2,752.06 -6.58%
38. Jun 30, 2019 $260.49 -0.55% 2,941.76 6.89%
39. Jul 31, 2019 $278.56 6.94% 2,980.38 1.31%
40. Aug 31, 2019 $193.07 -30.69% 2,926.46 -1.81%
41. Sep 30, 2019 $177.89 -7.86% 2,976.74 1.72%
42. Oct 31, 2019 $207.58 16.69% 3,037.56 2.04%
43. Nov 30, 2019 $196.18 -5.49% 3,140.98 3.40%
44. Dec 31, 2019 $170.59 -13.04% 3,230.78 2.86%
45. Jan 31, 2020 $186.29 9.20% 3,225.52 -0.16%
46. Feb 29, 2020 $150.26 -19.34% 2,954.22 -8.41%
47. Mar 31, 2020 $145.16 -3.39% 2,584.59 -12.51%
48. Apr 30, 2020 $191.25 31.75% 2,912.43 12.68%
49. May 31, 2020 $223.90 17.07% 3,044.31 4.53%
50. Jun 30, 2020 $241.56 7.89% 3,100.29 1.84%
51. Jul 31, 2020 $299.94 24.17% 3,271.12 5.51%
52. Aug 31, 2020 $307.62 2.56% 3,500.31 7.01%
53. Sep 30, 2020 $277.06 -9.93% 3,363.00 -3.92%
54. Oct 31, 2020 $251.88 -9.09% 3,269.96 -2.77%
55. Nov 30, 2020 $274.10 8.82% 3,621.63 10.75%
56. Dec 31, 2020 $324.20 18.28% 3,756.07 3.71%
57. Jan 31, 2021 $348.25 7.42% 3,714.24 -1.11%
58. Feb 28, 2021 $324.55 -6.81% 3,811.15 2.61%
59. Mar 31, 2021 $318.73 -1.79% 3,972.89 4.24%
60. Apr 30, 2021 $320.73 0.63% 4,181.17 5.24%
61. May 31, 2021 $284.58 -11.27% 4,204.11 0.55%
62. Jun 30, 2021 $312.11 9.67% 4,297.50 2.22%
63. Jul 31, 2021 $327.14 4.82% 4,395.26 2.27%
64. Aug 31, 2021 $363.96 11.26% 4,522.68 2.90%
65. Sep 30, 2021 $325.52 -10.56% 4,307.54 -4.76%
66. Oct 31, 2021 $332.04 2.00% 4,605.38 6.91%
67. Nov 30, 2021 $314.78 -5.20% 4,567.00 -0.83%
68. Dec 31, 2021 $359.17 14.10% 4,766.18 4.36%
69. Jan 31, 2022 $295.87 -17.62% 4,515.55 -5.26%
70. Feb 28, 2022 $310.74 5.03% 4,373.94 -3.14%
71. Mar 31, 2022 $331.24 6.60% 4,530.41 3.58%
Average (R): 2.44% 1.20%
Standard deviation: 11.78% 4.24%

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 ABMD during period t

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


Variance and Covariance

Abiomed Inc., calculation of variance and covariance of returns

Microsoft Excel
t Date RABMD,t RS&P 500,t (RABMD,tRABMD)2 (RS&P 500,tRS&P 500)2 (RABMD,tRABMD)×(RS&P 500,tRS&P 500)
1. May 31, 2016 2.23% 1.53% 0.04 0.11 -0.07
2. Jun 30, 2016 10.05% 0.09% 57.97 1.23 -8.46
3. Jul 31, 2016 7.94% 3.56% 30.32 5.57 12.99
. . . . . . .
. . . . . . .
. . . . . . .
70. Feb 28, 2022 5.03% -3.14% 6.71 18.82 -11.24
71. Mar 31, 2022 6.60% 3.58% 17.32 5.64 9.89
Total (Σ): 9,718.37 1,257.74 1,707.27
t Date RABMD,t RS&P 500,t (RABMD,tRABMD)2 (RS&P 500,tRS&P 500)2 (RABMD,tRABMD)×(RS&P 500,tRS&P 500)
1. May 31, 2016 2.23% 1.53% 0.04 0.11 -0.07
2. Jun 30, 2016 10.05% 0.09% 57.97 1.23 -8.46
3. Jul 31, 2016 7.94% 3.56% 30.32 5.57 12.99
4. Aug 31, 2016 -0.03% -0.12% 6.06 1.75 3.26
5. Sep 30, 2016 9.02% -0.12% 43.38 1.76 -8.73
6. Oct 31, 2016 -18.35% -1.94% 431.89 9.89 65.34
7. Nov 30, 2016 6.91% 3.42% 19.98 4.91 9.90
8. Dec 31, 2016 0.39% 1.82% 4.18 0.38 -1.26
9. Jan 31, 2017 -5.60% 1.79% 64.57 0.34 -4.71
10. Feb 28, 2017 10.91% 3.72% 71.74 6.34 21.33
11. Mar 31, 2017 6.13% -0.04% 13.64 1.54 -4.58
12. Apr 30, 2017 4.09% 0.91% 2.74 0.09 -0.48
13. May 31, 2017 5.46% 1.16% 9.12 0.00 -0.13
14. Jun 30, 2017 4.27% 0.48% 3.37 0.52 -1.32
15. Jul 31, 2017 3.34% 1.93% 0.82 0.54 0.67
16. Aug 31, 2017 1.83% 0.05% 0.37 1.32 0.69
17. Sep 30, 2017 11.80% 1.93% 87.76 0.53 6.83
18. Oct 31, 2017 14.42% 2.22% 143.74 1.03 12.19
19. Nov 30, 2017 1.00% 2.81% 2.07 2.58 -2.31
20. Dec 31, 2017 -3.81% 0.98% 39.05 0.05 1.37
21. Jan 31, 2018 25.39% 5.62% 527.07 19.50 101.39
22. Feb 28, 2018 14.12% -3.89% 136.51 25.97 -59.55
23. Mar 31, 2018 8.51% -2.69% 36.85 15.13 -23.61
24. Apr 30, 2018 3.42% 0.27% 0.97 0.86 -0.92
25. May 31, 2018 26.65% 2.16% 586.13 0.92 23.22
26. Jun 30, 2018 7.32% 0.48% 23.89 0.51 -3.51
27. Jul 31, 2018 -13.33% 3.60% 248.50 5.76 -37.84
28. Aug 31, 2018 14.68% 3.03% 149.96 3.33 22.34
29. Sep 30, 2018 10.62% 0.43% 66.95 0.60 -6.32
30. Oct 31, 2018 -24.14% -6.94% 706.02 66.29 216.34
31. Nov 30, 2018 -2.50% 1.79% 24.33 0.34 -2.88
32. Dec 31, 2018 -2.30% -9.18% 22.39 107.73 49.11
33. Jan 31, 2019 8.01% 7.87% 31.06 44.45 37.15
34. Feb 28, 2019 -4.72% 2.97% 51.20 3.14 -12.67
35. Mar 31, 2019 -14.62% 1.79% 290.95 0.35 -10.08
36. Apr 30, 2019 -2.86% 3.93% 28.09 7.45 -14.47
37. May 31, 2019 -5.58% -6.58% 64.31 60.52 62.39
38. Jun 30, 2019 -0.55% 6.89% 8.89 32.39 -16.97
39. Jul 31, 2019 6.94% 1.31% 20.26 0.01 0.50
40. Aug 31, 2019 -30.69% -1.81% 1,097.29 9.07 99.74
41. Sep 30, 2019 -7.86% 1.72% 106.05 0.27 -5.32
42. Oct 31, 2019 16.69% 2.04% 203.19 0.71 11.99
43. Nov 30, 2019 -5.49% 3.40% 62.84 4.85 -17.46
44. Dec 31, 2019 -13.04% 2.86% 239.62 2.75 -25.65
45. Jan 31, 2020 9.20% -0.16% 45.80 1.86 -9.23
46. Feb 29, 2020 -19.34% -8.41% 474.21 92.41 209.33
47. Mar 31, 2020 -3.39% -12.51% 33.98 188.06 79.94
48. Apr 30, 2020 31.75% 12.68% 859.41 131.85 336.62
49. May 31, 2020 17.07% 4.53% 214.23 11.07 48.69
50. Jun 30, 2020 7.89% 1.84% 29.72 0.41 3.47
51. Jul 31, 2020 24.17% 5.51% 472.30 18.56 93.63
52. Aug 31, 2020 2.56% 7.01% 0.02 33.70 0.73
53. Sep 30, 2020 -9.93% -3.92% 153.01 26.26 63.39
54. Oct 31, 2020 -9.09% -2.77% 132.80 15.75 45.73
55. Nov 30, 2020 8.82% 10.75% 40.78 91.26 61.01
56. Dec 31, 2020 18.28% 3.71% 250.99 6.30 39.77
57. Jan 31, 2021 7.42% -1.11% 24.83 5.36 -11.54
58. Feb 28, 2021 -6.81% 2.61% 85.39 1.98 -13.01
59. Mar 31, 2021 -1.79% 4.24% 17.88 9.25 -12.86
60. Apr 30, 2021 0.63% 5.24% 3.27 16.33 -7.31
61. May 31, 2021 -11.27% 0.55% 187.87 0.43 8.95
62. Jun 30, 2021 9.67% 2.22% 52.40 1.04 7.38
63. Jul 31, 2021 4.82% 2.27% 5.67 1.15 2.55
64. Aug 31, 2021 11.26% 2.90% 77.79 2.88 14.97
65. Sep 30, 2021 -10.56% -4.76% 168.92 35.51 77.44
66. Oct 31, 2021 2.00% 6.91% 0.19 32.63 -2.47
67. Nov 30, 2021 -5.20% -0.83% 58.27 4.14 15.54
68. Dec 31, 2021 14.10% 4.36% 136.11 9.98 36.86
69. Jan 31, 2022 -17.62% -5.26% 402.38 41.73 129.59
70. Feb 28, 2022 5.03% -3.14% 6.71 18.82 -11.24
71. Mar 31, 2022 6.60% 3.58% 17.32 5.64 9.89
Total (Σ): 9,718.37 1,257.74 1,707.27

Show all

VarianceABMD = Σ(RABMD,tRABMD)2 ÷ (71 – 1)
= 9,718.37 ÷ (71 – 1)
= 138.83

VarianceS&P 500 = Σ(RS&P 500,tRS&P 500)2 ÷ (71 – 1)
= 1,257.74 ÷ (71 – 1)
= 17.97

CovarianceABMD, S&P 500 = Σ(RABMD,tRABMD)×(RS&P 500,tRS&P 500) ÷ (71 – 1)
= 1,707.27 ÷ (71 – 1)
= 24.39


Systematic Risk (β) Estimation

Microsoft Excel
VarianceABMD 138.83
VarianceS&P 500 17.97
CovarianceABMD, S&P 500 24.39
Correlation coefficientABMD, S&P 5001 0.49
βABMD2 1.36
αABMD3 0.80%

Calculations

1 Correlation coefficientABMD, S&P 500
= CovarianceABMD, S&P 500 ÷ (Standard deviationABMD × Standard deviationS&P 500)
= 24.39 ÷ (11.78% × 4.24%)
= 0.49

2 βABMD
= CovarianceABMD, S&P 500 ÷ VarianceS&P 500
= 24.39 ÷ 17.97
= 1.36

3 αABMD
= AverageABMD – βABMD × AverageS&P 500
= 2.44%1.36 × 1.20%
= 0.80%


Expected Rate of Return

Microsoft Excel
Assumptions
Rate of return on LT Treasury Composite1 RF 4.43%
Expected rate of return on market portfolio2 E(RM) 13.60%
Systematic risk (β) of Abiomed Inc. common stock βABMD 1.36
 
Expected rate of return on Abiomed Inc. common stock3 E(RABMD) 16.88%

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(RABMD) = RF + βABMD [E(RM) – RF]
= 4.43% + 1.36 [13.60%4.43%]
= 16.88%