Stock Analysis on Net
Stock Analysis on Net

IQVIA Holdings Inc. (NYSE:IQV)

This company has been moved to the archive! The financial data has not been updated since November 1, 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 IQVIA Holdings Inc. common stock.

Rates of Return

IQVIA Holdings Inc., monthly rates of return

Microsoft Excel
IQVIA Holdings Inc. (IQV) Standard & Poor’s 500 (S&P 500)
t Date PriceIQV,t1 DividendIQV,t1 RIQV,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2018 $102.19 2,823.81
1. Feb 28, 2018 $98.33 -3.78% 2,713.83 -3.89%
2. Mar 31, 2018 $98.11 -0.22% 2,640.87 -2.69%
3. Apr 30, 2018 $95.76 -2.40% 2,648.05 0.27%
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2022 $218.02 3.98% 4,080.11 5.38%
59. Dec 31, 2022 $204.89 -6.02% 3,839.50 -5.90%
Average (R): 1.59% 0.67%
Standard deviation: 9.20% 5.40%
IQVIA Holdings Inc. (IQV) Standard & Poor’s 500 (S&P 500)
t Date PriceIQV,t1 DividendIQV,t1 RIQV,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2018 $102.19 2,823.81
1. Feb 28, 2018 $98.33 -3.78% 2,713.83 -3.89%
2. Mar 31, 2018 $98.11 -0.22% 2,640.87 -2.69%
3. Apr 30, 2018 $95.76 -2.40% 2,648.05 0.27%
4. May 31, 2018 $98.93 3.31% 2,705.27 2.16%
5. Jun 30, 2018 $99.82 0.90% 2,718.37 0.48%
6. Jul 31, 2018 $121.94 22.16% 2,816.29 3.60%
7. Aug 31, 2018 $127.09 4.22% 2,901.52 3.03%
8. Sep 30, 2018 $129.74 2.09% 2,913.98 0.43%
9. Oct 31, 2018 $122.93 -5.25% 2,711.74 -6.94%
10. Nov 30, 2018 $125.07 1.74% 2,760.17 1.79%
11. Dec 31, 2018 $116.17 -7.12% 2,506.85 -9.18%
12. Jan 31, 2019 $129.01 11.05% 2,704.10 7.87%
13. Feb 28, 2019 $140.10 8.60% 2,784.49 2.97%
14. Mar 31, 2019 $143.85 2.68% 2,834.40 1.79%
15. Apr 30, 2019 $138.90 -3.44% 2,945.83 3.93%
16. May 31, 2019 $135.85 -2.20% 2,752.06 -6.58%
17. Jun 30, 2019 $160.90 18.44% 2,941.76 6.89%
18. Jul 31, 2019 $159.17 -1.08% 2,980.38 1.31%
19. Aug 31, 2019 $155.15 -2.53% 2,926.46 -1.81%
20. Sep 30, 2019 $149.38 -3.72% 2,976.74 1.72%
21. Oct 31, 2019 $144.42 -3.32% 3,037.56 2.04%
22. Nov 30, 2019 $145.98 1.08% 3,140.98 3.40%
23. Dec 31, 2019 $154.51 5.84% 3,230.78 2.86%
24. Jan 31, 2020 $155.25 0.48% 3,225.52 -0.16%
25. Feb 29, 2020 $139.49 -10.15% 2,954.22 -8.41%
26. Mar 31, 2020 $107.86 -22.68% 2,584.59 -12.51%
27. Apr 30, 2020 $142.59 32.20% 2,912.43 12.68%
28. May 31, 2020 $149.52 4.86% 3,044.31 4.53%
29. Jun 30, 2020 $141.88 -5.11% 3,100.29 1.84%
30. Jul 31, 2020 $158.39 11.64% 3,271.12 5.51%
31. Aug 31, 2020 $163.75 3.38% 3,500.31 7.01%
32. Sep 30, 2020 $157.63 -3.74% 3,363.00 -3.92%
33. Oct 31, 2020 $153.99 -2.31% 3,269.96 -2.77%
34. Nov 30, 2020 $168.99 9.74% 3,621.63 10.75%
35. Dec 31, 2020 $179.17 6.02% 3,756.07 3.71%
36. Jan 31, 2021 $177.80 -0.76% 3,714.24 -1.11%
37. Feb 28, 2021 $192.79 8.43% 3,811.15 2.61%
38. Mar 31, 2021 $193.14 0.18% 3,972.89 4.24%
39. Apr 30, 2021 $234.69 21.51% 4,181.17 5.24%
40. May 31, 2021 $240.16 2.33% 4,204.11 0.55%
41. Jun 30, 2021 $242.32 0.90% 4,297.50 2.22%
42. Jul 31, 2021 $247.70 2.22% 4,395.26 2.27%
43. Aug 31, 2021 $259.73 4.86% 4,522.68 2.90%
44. Sep 30, 2021 $239.54 -7.77% 4,307.54 -4.76%
45. Oct 31, 2021 $261.42 9.13% 4,605.38 6.91%
46. Nov 30, 2021 $259.13 -0.88% 4,567.00 -0.83%
47. Dec 31, 2021 $282.14 8.88% 4,766.18 4.36%
48. Jan 31, 2022 $244.90 -13.20% 4,515.55 -5.26%
49. Feb 28, 2022 $230.12 -6.04% 4,373.94 -3.14%
50. Mar 31, 2022 $231.21 0.47% 4,530.41 3.58%
51. Apr 30, 2022 $217.99 -5.72% 4,131.93 -8.80%
52. May 31, 2022 $215.25 -1.26% 4,132.15 0.01%
53. Jun 30, 2022 $216.99 0.81% 3,785.38 -8.39%
54. Jul 31, 2022 $240.27 10.73% 4,130.29 9.11%
55. Aug 31, 2022 $212.66 -11.49% 3,955.00 -4.24%
56. Sep 30, 2022 $181.14 -14.82% 3,585.62 -9.34%
57. Oct 31, 2022 $209.67 15.75% 3,871.98 7.99%
58. Nov 30, 2022 $218.02 3.98% 4,080.11 5.38%
59. Dec 31, 2022 $204.89 -6.02% 3,839.50 -5.90%
Average (R): 1.59% 0.67%
Standard deviation: 9.20% 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 IQV during period t

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

Variance and Covariance

IQVIA Holdings Inc., calculation of variance and covariance of returns

Microsoft Excel
t Date RIQV,t RS&P 500,t (RIQV,t–RIQV)2 (RS&P 500,t–RS&P 500)2 (RIQV,t–RIQV)×(RS&P 500,t–RS&P 500)
1. Feb 28, 2018 -3.78% -3.89% 28.78 20.81 24.47
2. Mar 31, 2018 -0.22% -2.69% 3.28 11.26 6.08
3. Apr 30, 2018 -2.40% 0.27% 15.86 0.16 1.57
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2022 3.98% 5.38% 5.74 22.17 11.28
59. Dec 31, 2022 -6.02% -5.90% 57.90 43.08 49.95
Total (Σ): 4,912.14 1,691.48 2,339.53
t Date RIQV,t RS&P 500,t (RIQV,t–RIQV)2 (RS&P 500,t–RS&P 500)2 (RIQV,t–RIQV)×(RS&P 500,t–RS&P 500)
1. Feb 28, 2018 -3.78% -3.89% 28.78 20.81 24.47
2. Mar 31, 2018 -0.22% -2.69% 3.28 11.26 6.08
3. Apr 30, 2018 -2.40% 0.27% 15.86 0.16 1.57
4. May 31, 2018 3.31% 2.16% 2.97 2.23 2.57
5. Jun 30, 2018 0.90% 0.48% 0.47 0.03 0.13
6. Jul 31, 2018 22.16% 3.60% 423.24 8.62 60.39
7. Aug 31, 2018 4.22% 3.03% 6.95 5.57 6.22
8. Sep 30, 2018 2.09% 0.43% 0.25 0.06 -0.12
9. Oct 31, 2018 -5.25% -6.94% 46.73 57.87 52.00
10. Nov 30, 2018 1.74% 1.79% 0.02 1.25 0.17
11. Dec 31, 2018 -7.12% -9.18% 75.74 96.91 85.68
12. Jan 31, 2019 11.05% 7.87% 89.60 51.87 68.17
13. Feb 28, 2019 8.60% 2.97% 49.13 5.32 16.16
14. Mar 31, 2019 2.68% 1.79% 1.19 1.27 1.23
15. Apr 30, 2019 -3.44% 3.93% 25.28 10.66 -16.42
16. May 31, 2019 -2.20% -6.58% 14.31 52.48 27.41
17. Jun 30, 2019 18.44% 6.89% 284.00 38.77 104.93
18. Jul 31, 2019 -1.08% 1.31% 7.09 0.42 -1.72
19. Aug 31, 2019 -2.53% -1.81% 16.91 6.13 10.18
20. Sep 30, 2019 -3.72% 1.72% 28.15 1.11 -5.58
21. Oct 31, 2019 -3.32% 2.04% 24.08 1.89 -6.76
22. Nov 30, 2019 1.08% 3.40% 0.26 7.50 -1.39
23. Dec 31, 2019 5.84% 2.86% 18.11 4.81 9.33
24. Jan 31, 2020 0.48% -0.16% 1.23 0.69 0.92
25. Feb 29, 2020 -10.15% -8.41% 137.79 82.40 106.56
26. Mar 31, 2020 -22.68% -12.51% 588.67 173.67 319.75
27. Apr 30, 2020 32.20% 12.68% 937.10 144.43 367.89
28. May 31, 2020 4.86% 4.53% 10.71 14.91 12.64
29. Jun 30, 2020 -5.11% 1.84% 44.85 1.37 -7.85
30. Jul 31, 2020 11.64% 5.51% 100.99 23.46 48.67
31. Aug 31, 2020 3.38% 7.01% 3.23 40.19 11.39
32. Sep 30, 2020 -3.74% -3.92% 28.35 21.06 24.44
33. Oct 31, 2020 -2.31% -2.77% 15.18 11.79 13.38
34. Nov 30, 2020 9.74% 10.75% 66.48 101.77 82.25
35. Dec 31, 2020 6.02% 3.71% 19.69 9.28 13.51
36. Jan 31, 2021 -0.76% -1.11% 5.53 3.17 4.19
37. Feb 28, 2021 8.43% 2.61% 46.84 3.77 13.29
38. Mar 31, 2021 0.18% 4.24% 1.98 12.80 -5.03
39. Apr 30, 2021 21.51% 5.24% 397.04 20.94 91.18
40. May 31, 2021 2.33% 0.55% 0.55 0.01 -0.09
41. Jun 30, 2021 0.90% 2.22% 0.47 2.42 -1.07
42. Jul 31, 2021 2.22% 2.27% 0.40 2.59 1.02
43. Aug 31, 2021 4.86% 2.90% 10.69 4.98 7.30
44. Sep 30, 2021 -7.77% -4.76% 87.62 29.42 50.77
45. Oct 31, 2021 9.13% 6.91% 56.96 39.03 47.15
46. Nov 30, 2021 -0.88% -0.83% 6.07 2.25 3.69
47. Dec 31, 2021 8.88% 4.36% 53.18 13.65 26.94
48. Jan 31, 2022 -13.20% -5.26% 218.63 35.11 87.61
49. Feb 28, 2022 -6.04% -3.14% 58.10 14.46 28.99
50. Mar 31, 2022 0.47% 3.58% 1.24 8.47 -3.24
51. Apr 30, 2022 -5.72% -8.80% 53.36 89.54 69.12
52. May 31, 2022 -1.26% 0.01% 8.09 0.44 1.88
53. Jun 30, 2022 0.81% -8.39% 0.61 82.06 7.05
54. Jul 31, 2022 10.73% 9.11% 83.57 71.32 77.20
55. Aug 31, 2022 -11.49% -4.24% 171.04 24.11 64.22
56. Sep 30, 2022 -14.82% -9.34% 269.25 100.12 164.19
57. Oct 31, 2022 15.75% 7.99% 200.59 53.58 103.67
58. Nov 30, 2022 3.98% 5.38% 5.74 22.17 11.28
59. Dec 31, 2022 -6.02% -5.90% 57.90 43.08 49.95
Total (Σ): 4,912.14 1,691.48 2,339.53

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VarianceIQV = Σ(RIQV,t–RIQV)2 ÷ (59 – 1)
= 4,912.14 ÷ (59 – 1)
= 84.69

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

CovarianceIQV, S&P 500 = Σ(RIQV,t–RIQV)×(RS&P 500,t–RS&P 500) ÷ (59 – 1)
= 2,339.53 ÷ (59 – 1)
= 40.34

Systematic Risk (β) Estimation

Microsoft Excel
VarianceIQV 84.69
VarianceS&P 500 29.16
CovarianceIQV, S&P 500 40.34
Correlation coefficientIQV, S&P 5001 0.81
βIQV2 1.38
αIQV3 0.67%

Calculations

1 Correlation coefficientIQV, S&P 500
= CovarianceIQV, S&P 500 ÷ (Standard deviationIQV × Standard deviationS&P 500)
= 40.34 ÷ (9.20% × 5.40%)
= 0.81

2 βIQV
= CovarianceIQV, S&P 500 ÷ VarianceS&P 500
= 40.34 ÷ 29.16
= 1.38

3 αIQV
= AverageIQV – βIQV × AverageS&P 500
= 1.59% – 1.38 × 0.67%
= 0.67%

Expected Rate of Return

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Assumptions
Rate of return on LT Treasury Composite1 RF 4.62%
Expected rate of return on market portfolio2 E(RM) 13.69%
Systematic risk (β) of IQVIA Holdings Inc. common stock βIQV 1.38
 
Expected rate of return on IQVIA Holdings Inc. common stock3 E(RIQV) 17.16%

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(RIQV) = RF + βIQV [E(RM) – RF]
= 4.62% + 1.38 [13.69% – 4.62%]
= 17.16%