Stock Analysis on Net

Axon Enterprise Inc. (NASDAQ:AXON)

This company has been moved to the archive! The financial data has not been updated since May 9, 2023.

Capital Asset Pricing Model (CAPM)

Microsoft Excel

Rates of Return

Axon Enterprise Inc., monthly rates of return

Microsoft Excel
Axon Enterprise Inc. (AXON) Standard & Poor’s 500 (S&P 500)
t Date PriceAXON,t1 DividendAXON,t1 RAXON,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2018 $26.46 2,823.81
1. Feb 28, 2018 $34.83 31.63% 2,713.83 -3.89%
2. Mar 31, 2018 $39.31 12.86% 2,640.87 -2.69%
3. Apr 30, 2018 $41.98 6.79% 2,648.05 0.27%
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2022 $184.03 26.53% 4,080.11 5.38%
59. Dec 31, 2022 $165.93 -9.84% 3,839.50 -5.90%
Average (R): 4.21% 0.67%
Standard deviation: 15.35% 5.40%
Axon Enterprise Inc. (AXON) Standard & Poor’s 500 (S&P 500)
t Date PriceAXON,t1 DividendAXON,t1 RAXON,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2018 $26.46 2,823.81
1. Feb 28, 2018 $34.83 31.63% 2,713.83 -3.89%
2. Mar 31, 2018 $39.31 12.86% 2,640.87 -2.69%
3. Apr 30, 2018 $41.98 6.79% 2,648.05 0.27%
4. May 31, 2018 $63.68 51.69% 2,705.27 2.16%
5. Jun 30, 2018 $63.18 -0.79% 2,718.37 0.48%
6. Jul 31, 2018 $67.93 7.52% 2,816.29 3.60%
7. Aug 31, 2018 $68.26 0.49% 2,901.52 3.03%
8. Sep 30, 2018 $68.43 0.25% 2,913.98 0.43%
9. Oct 31, 2018 $61.72 -9.81% 2,711.74 -6.94%
10. Nov 30, 2018 $43.47 -29.57% 2,760.17 1.79%
11. Dec 31, 2018 $43.75 0.64% 2,506.85 -9.18%
12. Jan 31, 2019 $51.01 16.59% 2,704.10 7.87%
13. Feb 28, 2019 $53.83 5.53% 2,784.49 2.97%
14. Mar 31, 2019 $54.41 1.08% 2,834.40 1.79%
15. Apr 30, 2019 $63.50 16.71% 2,945.83 3.93%
16. May 31, 2019 $66.78 5.17% 2,752.06 -6.58%
17. Jun 30, 2019 $64.21 -3.85% 2,941.76 6.89%
18. Jul 31, 2019 $70.22 9.36% 2,980.38 1.31%
19. Aug 31, 2019 $59.97 -14.60% 2,926.46 -1.81%
20. Sep 30, 2019 $56.78 -5.32% 2,976.74 1.72%
21. Oct 31, 2019 $51.13 -9.95% 3,037.56 2.04%
22. Nov 30, 2019 $73.80 44.34% 3,140.98 3.40%
23. Dec 31, 2019 $73.28 -0.70% 3,230.78 2.86%
24. Jan 31, 2020 $76.81 4.82% 3,225.52 -0.16%
25. Feb 29, 2020 $77.37 0.73% 2,954.22 -8.41%
26. Mar 31, 2020 $70.77 -8.53% 2,584.59 -12.51%
27. Apr 30, 2020 $72.71 2.74% 2,912.43 12.68%
28. May 31, 2020 $75.96 4.47% 3,044.31 4.53%
29. Jun 30, 2020 $98.13 29.19% 3,100.29 1.84%
30. Jul 31, 2020 $83.13 -15.29% 3,271.12 5.51%
31. Aug 31, 2020 $85.68 3.07% 3,500.31 7.01%
32. Sep 30, 2020 $90.70 5.86% 3,363.00 -3.92%
33. Oct 31, 2020 $98.90 9.04% 3,269.96 -2.77%
34. Nov 30, 2020 $125.69 27.09% 3,621.63 10.75%
35. Dec 31, 2020 $122.53 -2.51% 3,756.07 3.71%
36. Jan 31, 2021 $164.16 33.98% 3,714.24 -1.11%
37. Feb 28, 2021 $165.49 0.81% 3,811.15 2.61%
38. Mar 31, 2021 $142.42 -13.94% 3,972.89 4.24%
39. Apr 30, 2021 $151.61 6.45% 4,181.17 5.24%
40. May 31, 2021 $140.59 -7.27% 4,204.11 0.55%
41. Jun 30, 2021 $176.80 25.76% 4,297.50 2.22%
42. Jul 31, 2021 $186.02 5.21% 4,395.26 2.27%
43. Aug 31, 2021 $181.87 -2.23% 4,522.68 2.90%
44. Sep 30, 2021 $175.02 -3.77% 4,307.54 -4.76%
45. Oct 31, 2021 $179.96 2.82% 4,605.38 6.91%
46. Nov 30, 2021 $168.79 -6.21% 4,567.00 -0.83%
47. Dec 31, 2021 $157.00 -6.99% 4,766.18 4.36%
48. Jan 31, 2022 $139.93 -10.87% 4,515.55 -5.26%
49. Feb 28, 2022 $140.25 0.23% 4,373.94 -3.14%
50. Mar 31, 2022 $137.73 -1.80% 4,530.41 3.58%
51. Apr 30, 2022 $112.20 -18.54% 4,131.93 -8.80%
52. May 31, 2022 $101.36 -9.66% 4,132.15 0.01%
53. Jun 30, 2022 $93.17 -8.08% 3,785.38 -8.39%
54. Jul 31, 2022 $110.19 18.27% 4,130.29 9.11%
55. Aug 31, 2022 $116.68 5.89% 3,955.00 -4.24%
56. Sep 30, 2022 $115.75 -0.80% 3,585.62 -9.34%
57. Oct 31, 2022 $145.44 25.65% 3,871.98 7.99%
58. Nov 30, 2022 $184.03 26.53% 4,080.11 5.38%
59. Dec 31, 2022 $165.93 -9.84% 3,839.50 -5.90%
Average (R): 4.21% 0.67%
Standard deviation: 15.35% 5.40%

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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 AXON during period t

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


Variance and Covariance

Axon Enterprise Inc., calculation of variance and covariance of returns

Microsoft Excel
t Date RAXON,t RS&P 500,t (RAXON,tRAXON)2 (RS&P 500,tRS&P 500)2 (RAXON,tRAXON)×(RS&P 500,tRS&P 500)
1. Feb 28, 2018 31.63% -3.89% 752.03 20.81 -125.09
2. Mar 31, 2018 12.86% -2.69% 74.87 11.26 -29.03
3. Apr 30, 2018 6.79% 0.27% 6.67 0.16 -1.02
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2022 26.53% 5.38% 498.35 22.17 105.11
59. Dec 31, 2022 -9.84% -5.90% 197.26 43.08 92.19
Total (Σ): 13,664.38 1,691.48 1,364.75
t Date RAXON,t RS&P 500,t (RAXON,tRAXON)2 (RS&P 500,tRS&P 500)2 (RAXON,tRAXON)×(RS&P 500,tRS&P 500)
1. Feb 28, 2018 31.63% -3.89% 752.03 20.81 -125.09
2. Mar 31, 2018 12.86% -2.69% 74.87 11.26 -29.03
3. Apr 30, 2018 6.79% 0.27% 6.67 0.16 -1.02
4. May 31, 2018 51.69% 2.16% 2,254.52 2.23 70.95
5. Jun 30, 2018 -0.79% 0.48% 24.95 0.03 0.91
6. Jul 31, 2018 7.52% 3.60% 10.95 8.62 9.71
7. Aug 31, 2018 0.49% 3.03% 13.87 5.57 -8.79
8. Sep 30, 2018 0.25% 0.43% 15.68 0.06 0.94
9. Oct 31, 2018 -9.81% -6.94% 196.42 57.87 106.61
10. Nov 30, 2018 -29.57% 1.79% 1,140.98 1.25 -37.81
11. Dec 31, 2018 0.64% -9.18% 12.71 96.91 35.10
12. Jan 31, 2019 16.59% 7.87% 153.38 51.87 89.19
13. Feb 28, 2019 5.53% 2.97% 1.74 5.32 3.04
14. Mar 31, 2019 1.08% 1.79% 9.81 1.27 -3.53
15. Apr 30, 2019 16.71% 3.93% 156.18 10.66 40.80
16. May 31, 2019 5.17% -6.58% 0.91 52.48 -6.92
17. Jun 30, 2019 -3.85% 6.89% 64.93 38.77 -50.17
18. Jul 31, 2019 9.36% 1.31% 26.53 0.42 3.33
19. Aug 31, 2019 -14.60% -1.81% 353.68 6.13 46.56
20. Sep 30, 2019 -5.32% 1.72% 90.80 1.11 -10.02
21. Oct 31, 2019 -9.95% 2.04% 200.51 1.89 -19.49
22. Nov 30, 2019 44.34% 3.40% 1,610.30 7.50 109.87
23. Dec 31, 2019 -0.70% 2.86% 24.15 4.81 -10.77
24. Jan 31, 2020 4.82% -0.16% 0.37 0.69 -0.50
25. Feb 29, 2020 0.73% -8.41% 12.11 82.40 31.59
26. Mar 31, 2020 -8.53% -12.51% 162.30 173.67 167.89
27. Apr 30, 2020 2.74% 12.68% 2.16 144.43 -17.64
28. May 31, 2020 4.47% 4.53% 0.07 14.91 1.01
29. Jun 30, 2020 29.19% 1.84% 623.85 1.37 29.28
30. Jul 31, 2020 -15.29% 5.51% 380.07 23.46 -94.43
31. Aug 31, 2020 3.07% 7.01% 1.30 40.19 -7.24
32. Sep 30, 2020 5.86% -3.92% 2.72 21.06 -7.57
33. Oct 31, 2020 9.04% -2.77% 23.34 11.79 -16.59
34. Nov 30, 2020 27.09% 10.75% 523.43 101.77 230.80
35. Dec 31, 2020 -2.51% 3.71% 45.21 9.28 -20.48
36. Jan 31, 2021 33.98% -1.11% 886.01 3.17 -52.99
37. Feb 28, 2021 0.81% 2.61% 11.55 3.77 -6.60
38. Mar 31, 2021 -13.94% 4.24% 329.42 12.80 -64.93
39. Apr 30, 2021 6.45% 5.24% 5.03 20.94 10.27
40. May 31, 2021 -7.27% 0.55% 131.75 0.01 1.35
41. Jun 30, 2021 25.76% 2.22% 464.24 2.42 33.50
42. Jul 31, 2021 5.21% 2.27% 1.01 2.59 1.62
43. Aug 31, 2021 -2.23% 2.90% 41.48 4.98 -14.38
44. Sep 30, 2021 -3.77% -4.76% 63.61 29.42 43.26
45. Oct 31, 2021 2.82% 6.91% 1.92 39.03 -8.67
46. Nov 30, 2021 -6.21% -0.83% 108.50 2.25 15.62
47. Dec 31, 2021 -6.99% 4.36% 125.32 13.65 -41.36
48. Jan 31, 2022 -10.87% -5.26% 227.47 35.11 89.36
49. Feb 28, 2022 0.23% -3.14% 15.85 14.46 15.14
50. Mar 31, 2022 -1.80% 3.58% 36.07 8.47 -17.48
51. Apr 30, 2022 -18.54% -8.80% 517.37 89.54 215.23
52. May 31, 2022 -9.66% 0.01% 192.40 0.44 9.17
53. Jun 30, 2022 -8.08% -8.39% 151.03 82.06 111.33
54. Jul 31, 2022 18.27% 9.11% 197.63 71.32 118.72
55. Aug 31, 2022 5.89% -4.24% 2.82 24.11 -8.25
56. Sep 30, 2022 -0.80% -9.34% 25.07 100.12 50.10
57. Oct 31, 2022 25.65% 7.99% 459.70 53.58 156.94
58. Nov 30, 2022 26.53% 5.38% 498.35 22.17 105.11
59. Dec 31, 2022 -9.84% -5.90% 197.26 43.08 92.19
Total (Σ): 13,664.38 1,691.48 1,364.75

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VarianceAXON = Σ(RAXON,tRAXON)2 ÷ (59 – 1)
= 13,664.38 ÷ (59 – 1)
= 235.59

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

CovarianceAXON, S&P 500 = Σ(RAXON,tRAXON)×(RS&P 500,tRS&P 500) ÷ (59 – 1)
= 1,364.75 ÷ (59 – 1)
= 23.53


Systematic Risk (β) Estimation

Microsoft Excel
VarianceAXON 235.59
VarianceS&P 500 29.16
CovarianceAXON, S&P 500 23.53
Correlation coefficientAXON, S&P 5001 0.28
βAXON2 0.81
αAXON3 3.67%

Calculations

1 Correlation coefficientAXON, S&P 500
= CovarianceAXON, S&P 500 ÷ (Standard deviationAXON × Standard deviationS&P 500)
= 23.53 ÷ (15.35% × 5.40%)
= 0.28

2 βAXON
= CovarianceAXON, S&P 500 ÷ VarianceS&P 500
= 23.53 ÷ 29.16
= 0.81

3 αAXON
= AverageAXON – βAXON × AverageS&P 500
= 4.21%0.81 × 0.67%
= 3.67%


Expected Rate of Return

Microsoft Excel
Assumptions
Rate of return on LT Treasury Composite1 RF 4.42%
Expected rate of return on market portfolio2 E(RM) 13.61%
Systematic risk (β) of Axon Enterprise Inc. common stock βAXON 0.81
 
Expected rate of return on Axon Enterprise Inc. common stock3 E(RAXON) 11.83%

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(RAXON) = RF + βAXON [E(RM) – RF]
= 4.42% + 0.81 [13.61%4.42%]
= 11.83%