Beta: what it is and how to read it
Beta measures how much a stock moves when the market moves. With a beta of 1, the stock tends to rise and fall as much as the market; with 1.5, 50% more; with 0.5, half as much.
How it is calculated
Beta = how the stock moves against its benchmark index, calculated from the prices of recent years.
How to read it
A low beta (utilities, food, pharma) usually comes with calmer stocks; a high one (tech, banks, cyclicals), with bigger swings in both directions.
Beta in the MeridIAn ranking
Among the 2,055 companies in the ranking with data, the median Beta is 0.85: half are below and half above. The lowest 25% are below 0.55 and the highest 25% above 1.18.
For example: NVIDIA, 2.22; Apple, 1.08; Alphabet, 1.23; Banco Santander, 0.93.
By sector
| Sector | Median | Companies with data |
|---|---|---|
| Basic Materials | 0.95 | 137 |
| Communication Services | 0.72 | 96 |
| Consumer Cyclical | 1.02 | 221 |
| Consumer Defensive | 0.45 | 121 |
| Energy | 0.57 | 101 |
| Financial Services | 0.71 | 343 |
| Healthcare | 0.75 | 209 |
| Industrials | 0.98 | 377 |
| Real Estate | 0.95 | 98 |
| Technology | 1.19 | 262 |
| Utilities | 0.56 | 90 |
Lowest Beta
Highest Beta
What to watch out for
It is calculated from the past and can change. It measures volatility relative to the market, not the risk of the company doing badly: a low-beta stock can also fall a lot because of its own problems.
Related metrics
All metrics in the glossary → · Stocks by sector and country → · Ready-made screeners →
General information for educational purposes, not investment advice. Figures from the latest weekly analysis (Oct 8, 2026) with the latest available price.