Stock Analysis on Net

Stryker Corp. (NYSE:SYK)

This company has been moved to the archive! The financial data has not been updated since April 29, 2022.

Capital Asset Pricing Model (CAPM)

Microsoft Excel

Rates of Return

Stryker Corp., monthly rates of return

Microsoft Excel
Stryker Corp. (SYK) Standard & Poor’s 500 (S&P 500)
t Date PriceSYK,t1 DividendSYK,t1 RSYK,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2017 $123.53 2,278.87
1. Feb 28, 2017 $128.56 4.07% 2,363.64 3.72%
2. Mar 31, 2017 $131.65 $0.425 2.73% 2,362.72 -0.04%
3. Apr 30, 2017 $136.37 3.59% 2,384.20 0.91%
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2021 $236.63 -11.06% 4,567.00 -0.83%
59. Dec 31, 2021 $267.42 $0.695 13.31% 4,766.18 4.36%
Average (R): 1.61% 1.36%
Standard deviation: 6.40% 4.48%
Stryker Corp. (SYK) Standard & Poor’s 500 (S&P 500)
t Date PriceSYK,t1 DividendSYK,t1 RSYK,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2017 $123.53 2,278.87
1. Feb 28, 2017 $128.56 4.07% 2,363.64 3.72%
2. Mar 31, 2017 $131.65 $0.425 2.73% 2,362.72 -0.04%
3. Apr 30, 2017 $136.37 3.59% 2,384.20 0.91%
4. May 31, 2017 $142.96 4.83% 2,411.80 1.16%
5. Jun 30, 2017 $138.78 $0.425 -2.63% 2,423.41 0.48%
6. Jul 31, 2017 $147.10 6.00% 2,470.30 1.93%
7. Aug 31, 2017 $141.37 -3.90% 2,471.65 0.05%
8. Sep 30, 2017 $142.02 $0.425 0.76% 2,519.36 1.93%
9. Oct 31, 2017 $154.87 9.05% 2,575.26 2.22%
10. Nov 30, 2017 $156.00 0.73% 2,647.58 2.81%
11. Dec 31, 2017 $154.84 $0.47 -0.44% 2,673.61 0.98%
12. Jan 31, 2018 $164.38 6.16% 2,823.81 5.62%
13. Feb 28, 2018 $162.16 -1.35% 2,713.83 -3.89%
14. Mar 31, 2018 $160.92 $0.47 -0.47% 2,640.87 -2.69%
15. Apr 30, 2018 $169.42 5.28% 2,648.05 0.27%
16. May 31, 2018 $174.02 2.72% 2,705.27 2.16%
17. Jun 30, 2018 $168.86 $0.47 -2.70% 2,718.37 0.48%
18. Jul 31, 2018 $163.25 -3.32% 2,816.29 3.60%
19. Aug 31, 2018 $169.43 3.79% 2,901.52 3.03%
20. Sep 30, 2018 $177.68 $0.47 5.15% 2,913.98 0.43%
21. Oct 31, 2018 $162.22 -8.70% 2,711.74 -6.94%
22. Nov 30, 2018 $175.46 8.16% 2,760.17 1.79%
23. Dec 31, 2018 $156.75 $0.52 -10.37% 2,506.85 -9.18%
24. Jan 31, 2019 $177.57 13.28% 2,704.10 7.87%
25. Feb 28, 2019 $188.51 6.16% 2,784.49 2.97%
26. Mar 31, 2019 $197.52 $0.52 5.06% 2,834.40 1.79%
27. Apr 30, 2019 $188.91 -4.36% 2,945.83 3.93%
28. May 31, 2019 $183.24 -3.00% 2,752.06 -6.58%
29. Jun 30, 2019 $205.58 $0.52 12.48% 2,941.76 6.89%
30. Jul 31, 2019 $209.78 2.04% 2,980.38 1.31%
31. Aug 31, 2019 $220.66 5.19% 2,926.46 -1.81%
32. Sep 30, 2019 $216.30 $0.52 -1.74% 2,976.74 1.72%
33. Oct 31, 2019 $216.27 -0.01% 3,037.56 2.04%
34. Nov 30, 2019 $204.86 -5.28% 3,140.98 3.40%
35. Dec 31, 2019 $209.94 $0.575 2.76% 3,230.78 2.86%
36. Jan 31, 2020 $210.70 0.36% 3,225.52 -0.16%
37. Feb 29, 2020 $190.59 -9.54% 2,954.22 -8.41%
38. Mar 31, 2020 $166.49 $0.575 -12.34% 2,584.59 -12.51%
39. Apr 30, 2020 $186.43 11.98% 2,912.43 12.68%
40. May 31, 2020 $195.73 4.99% 3,044.31 4.53%
41. Jun 30, 2020 $180.19 $0.575 -7.65% 3,100.29 1.84%
42. Jul 31, 2020 $193.30 7.28% 3,271.12 5.51%
43. Aug 31, 2020 $198.16 2.51% 3,500.31 7.01%
44. Sep 30, 2020 $208.37 $0.575 5.44% 3,363.00 -3.92%
45. Oct 31, 2020 $202.01 -3.05% 3,269.96 -2.77%
46. Nov 30, 2020 $233.40 15.54% 3,621.63 10.75%
47. Dec 31, 2020 $245.04 $0.63 5.26% 3,756.07 3.71%
48. Jan 31, 2021 $221.01 -9.81% 3,714.24 -1.11%
49. Feb 28, 2021 $242.69 9.81% 3,811.15 2.61%
50. Mar 31, 2021 $243.58 $0.63 0.63% 3,972.89 4.24%
51. Apr 30, 2021 $262.63 7.82% 4,181.17 5.24%
52. May 31, 2021 $255.27 -2.80% 4,204.11 0.55%
53. Jun 30, 2021 $259.73 $0.63 1.99% 4,297.50 2.22%
54. Jul 31, 2021 $270.94 4.32% 4,395.26 2.27%
55. Aug 31, 2021 $277.10 2.27% 4,522.68 2.90%
56. Sep 30, 2021 $263.72 $0.63 -4.60% 4,307.54 -4.76%
57. Oct 31, 2021 $266.07 0.89% 4,605.38 6.91%
58. Nov 30, 2021 $236.63 -11.06% 4,567.00 -0.83%
59. Dec 31, 2021 $267.42 $0.695 13.31% 4,766.18 4.36%
Average (R): 1.61% 1.36%
Standard deviation: 6.40% 4.48%

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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 SYK during period t

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


Variance and Covariance

Stryker Corp., calculation of variance and covariance of returns

Microsoft Excel
t Date RSYK,t RS&P 500,t (RSYK,tRSYK)2 (RS&P 500,tRS&P 500)2 (RSYK,tRSYK)×(RS&P 500,tRS&P 500)
1. Feb 28, 2017 4.07% 3.72% 6.04 5.58 5.80
2. Mar 31, 2017 2.73% -0.04% 1.25 1.95 -1.56
3. Apr 30, 2017 3.59% 0.91% 3.88 0.20 -0.88
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2021 -11.06% -0.83% 160.76 4.80 27.78
59. Dec 31, 2021 13.31% 4.36% 136.69 9.02 35.11
Total (Σ): 2,373.71 1,164.17 1,168.81
t Date RSYK,t RS&P 500,t (RSYK,tRSYK)2 (RS&P 500,tRS&P 500)2 (RSYK,tRSYK)×(RS&P 500,tRS&P 500)
1. Feb 28, 2017 4.07% 3.72% 6.04 5.58 5.80
2. Mar 31, 2017 2.73% -0.04% 1.25 1.95 -1.56
3. Apr 30, 2017 3.59% 0.91% 3.88 0.20 -0.88
4. May 31, 2017 4.83% 1.16% 10.36 0.04 -0.64
5. Jun 30, 2017 -2.63% 0.48% 17.98 0.77 3.72
6. Jul 31, 2017 6.00% 1.93% 19.19 0.33 2.53
7. Aug 31, 2017 -3.90% 0.05% 30.36 1.70 7.18
8. Sep 30, 2017 0.76% 1.93% 0.73 0.33 -0.49
9. Oct 31, 2017 9.05% 2.22% 55.26 0.74 6.40
10. Nov 30, 2017 0.73% 2.81% 0.78 2.10 -1.28
11. Dec 31, 2017 -0.44% 0.98% 4.23 0.14 0.77
12. Jan 31, 2018 6.16% 5.62% 20.67 18.15 19.37
13. Feb 28, 2018 -1.35% -3.89% 8.79 27.59 15.57
14. Mar 31, 2018 -0.47% -2.69% 4.36 16.37 8.45
15. Apr 30, 2018 5.28% 0.27% 13.45 1.18 -3.98
16. May 31, 2018 2.72% 2.16% 1.21 0.64 0.88
17. Jun 30, 2018 -2.70% 0.48% 18.57 0.76 3.76
18. Jul 31, 2018 -3.32% 3.60% 24.37 5.04 -11.08
19. Aug 31, 2018 3.79% 3.03% 4.71 2.78 3.62
20. Sep 30, 2018 5.15% 0.43% 12.48 0.86 -3.28
21. Oct 31, 2018 -8.70% -6.94% 106.40 68.86 85.60
22. Nov 30, 2018 8.16% 1.79% 42.87 0.18 2.80
23. Dec 31, 2018 -10.37% -9.18% 143.55 111.00 126.23
24. Jan 31, 2019 13.28% 7.87% 136.14 42.39 75.97
25. Feb 28, 2019 6.16% 2.97% 20.67 2.61 7.34
26. Mar 31, 2019 5.06% 1.79% 11.84 0.19 1.50
27. Apr 30, 2019 -4.36% 3.93% 35.68 6.62 -15.37
28. May 31, 2019 -3.00% -6.58% 21.30 62.97 36.63
29. Jun 30, 2019 12.48% 6.89% 117.97 30.64 60.12
30. Jul 31, 2019 2.04% 1.31% 0.18 0.00 -0.02
31. Aug 31, 2019 5.19% -1.81% 12.76 10.03 -11.31
32. Sep 30, 2019 -1.74% 1.72% 11.25 0.13 -1.21
33. Oct 31, 2019 -0.01% 2.04% 2.65 0.47 -1.12
34. Nov 30, 2019 -5.28% 3.40% 47.47 4.19 -14.10
35. Dec 31, 2019 2.76% 2.86% 1.31 2.25 1.72
36. Jan 31, 2020 0.36% -0.16% 1.57 2.31 1.90
37. Feb 29, 2020 -9.54% -8.41% 124.51 95.43 109.01
38. Mar 31, 2020 -12.34% -12.51% 194.81 192.37 193.59
39. Apr 30, 2020 11.98% 12.68% 107.38 128.29 117.37
40. May 31, 2020 4.99% 4.53% 11.39 10.05 10.70
41. Jun 30, 2020 -7.65% 1.84% 85.75 0.23 -4.45
42. Jul 31, 2020 7.28% 5.51% 32.05 17.24 23.51
43. Aug 31, 2020 2.51% 7.01% 0.81 31.91 5.08
44. Sep 30, 2020 5.44% -3.92% 14.66 27.89 -20.22
45. Oct 31, 2020 -3.05% -2.77% 21.78 17.01 19.25
46. Nov 30, 2020 15.54% 10.75% 193.89 88.30 130.84
47. Dec 31, 2020 5.26% 3.71% 13.27 5.54 8.58
48. Jan 31, 2021 -9.81% -1.11% 130.43 6.11 28.23
49. Feb 28, 2021 9.81% 2.61% 67.16 1.57 10.25
50. Mar 31, 2021 0.63% 4.24% 0.98 8.33 -2.85
51. Apr 30, 2021 7.82% 5.24% 38.52 15.09 24.11
52. May 31, 2021 -2.80% 0.55% 19.51 0.65 3.57
53. Jun 30, 2021 1.99% 2.22% 0.14 0.75 0.33
54. Jul 31, 2021 4.32% 2.27% 7.30 0.84 2.48
55. Aug 31, 2021 2.27% 2.90% 0.43 2.38 1.02
56. Sep 30, 2021 -4.60% -4.76% 38.63 37.39 38.01
57. Oct 31, 2021 0.89% 6.91% 0.52 30.87 -4.02
58. Nov 30, 2021 -11.06% -0.83% 160.76 4.80 27.78
59. Dec 31, 2021 13.31% 4.36% 136.69 9.02 35.11
Total (Σ): 2,373.71 1,164.17 1,168.81

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VarianceSYK = Σ(RSYK,tRSYK)2 ÷ (59 – 1)
= 2,373.71 ÷ (59 – 1)
= 40.93

VarianceS&P 500 = Σ(RS&P 500,tRS&P 500)2 ÷ (59 – 1)
= 1,164.17 ÷ (59 – 1)
= 20.07

CovarianceSYK, S&P 500 = Σ(RSYK,tRSYK)×(RS&P 500,tRS&P 500) ÷ (59 – 1)
= 1,168.81 ÷ (59 – 1)
= 20.15


Systematic Risk (β) Estimation

Microsoft Excel
VarianceSYK 40.93
VarianceS&P 500 20.07
CovarianceSYK, S&P 500 20.15
Correlation coefficientSYK, S&P 5001 0.70
βSYK2 1.00
αSYK3 0.25%

Calculations

1 Correlation coefficientSYK, S&P 500
= CovarianceSYK, S&P 500 ÷ (Standard deviationSYK × Standard deviationS&P 500)
= 20.15 ÷ (6.40% × 4.48%)
= 0.70

2 βSYK
= CovarianceSYK, S&P 500 ÷ VarianceS&P 500
= 20.15 ÷ 20.07
= 1.00

3 αSYK
= AverageSYK – βSYK × AverageS&P 500
= 1.61%1.00 × 1.36%
= 0.25%


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 Stryker Corp. common stock βSYK 1.00
 
Expected rate of return on Stryker Corp. common stock3 E(RSYK) 13.64%

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(RSYK) = RF + βSYK [E(RM) – RF]
= 4.43% + 1.00 [13.60%4.43%]
= 13.64%