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CAPM Calculator
Result
Chart
Show formula & working
Required return = Rf + β × (Rm − Rf)
Above the SML (expected > required) → undervalued · below → overvalued
Details
Risk-free rate reference: 91-day Treasury Bill yield: rates and rules as of 28-Oct-2026 · Source: Reserve Bank of India — 91-day T-Bill cut-off yield at the last auction (RBI website, checked 31 Oct 2026). Every figure based on it stays editable.
How this works
CAPM says investors should be paid only for market risk, measured by beta. The security market line plots the required return for every beta.
If you expect a stock to return more than CAPM requires, it plots above the line — cheap for its risk.
Frequently asked questions
What market return should I use?
A long-term expected return for the broad market — an assumption, not a forecast you can rely on.
Is CAPM accurate?
It is a simple model; real returns depend on more than beta. Use it as a benchmark, not a verdict.