Snap’s stock (NYSE: SNAP) has lost roughly 4% YTD as compared to the 12% rise in the S&P500 index over the same period. That said, at its current price of just below $9, it is trading 8% above its fair value of slightly above $9 – Trefis’ estimate for Snap’s valuation.
Interestingly, Snap stock had a Sharpe Ratio of 0.1 since early 2017, which is lower than 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.25 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
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