RiskVol 52W#115
Research & Development to Revenue is the metric used to the financial stress or solvency profile of the business.
By Javier Sanz, Founder & Lead AnalystEditorially reviewed
Last updated: Reviewed by: Javier Sanz
Formula
Annualized standard deviation of daily returns over 52 weeks
Description
Measures total price volatility over the past year. Lower volatility stocks tend to have more predictable returns and are easier to hold through market turbulence. High volatility may create buying opportunities for patient value investors but also increases the risk of permanent capital loss.
Interpretation
Below 25% is moderate volatility. Above 40% is high. Compare to the market average (typically 15-20% for the S&P 500). Sudden increases in volatility may indicate emerging business problems or speculative trading activity.
Related metrics: Beta (Market Sensitivity), 52-Week Price Volatility, Maximum Drawdown 1Y (Max Drawdown). (Updated 2026)
Further Reading
- SEC EDGAR primary filings on Research & Development to Revenue (R&D/Revenue)- Primary source filings used to calculate Research & Development to Revenue (R&D/Revenue).
FAQ
How is Research & Development to Revenue calculated?+
Research & Development to Revenue uses the formula: Annualized standard deviation of daily returns over 52 weeks. compare against sector median on /screener with the Sector filter applied. ValueMarkers refreshes the calculation within 24 hours of each new SEC filing using SEC EDGAR balance-sheet + cash-flow statements.
What is a good Research & Development to Revenue value by sector?+
There is no single 'good' value for Research & Development to Revenue — context is sector-driven. compare against sector median on /screener with the Sector filter applied. The /screener exposes sector-relative percentiles for Research & Development to Revenue on every ticker, so you can compare against the sector median rather than the broad-market median.
Which investors use Research & Development to Revenue?+
Howard Marks, Seth Klarman, Bill Ackman in distressed scenarios cite Research & Development to Revenue as a key input to to flag solvency stress and avoid permanent capital loss. The academic anchor is Altman (1968) Z-Score and Piotroski (2000) F-Score. ValueMarkers weights this within the Risk pillar of the VMCI score (8% of total).
What are the limitations of Research & Development to Revenue?+
Research & Development to Revenue can mislead in asset-heavy industries where leverage ratios understate true risk. Pair Research & Development to Revenue with at least two cross-checks from other VMCI pillars — for example, free cash flow trend, balance-sheet quality, and earnings consistency — before drawing a single-metric conclusion.
Where can I see live Research & Development to Revenue data?+
Visit any /stock/[ticker] page on ValueMarkers to see live Research & Development to Revenue data, sector percentiles, and the VMCI composite score that integrates Research & Development to Revenue with 119 other indicators across 100,000+ stocks. The free /screener exposes Research & Development to Revenue as a filterable column.
Related Risk Indicators
Beta (Market Sensitivity)GM Trend
Beta is the metric used to the financial stress or solvency profile of the business.
52-Week Price VolatilityNM Trend
52-Week Price Volatility measures the financial stress or solvency profile of the business.
Maximum Drawdown 1Y (Max Drawdown)ROIC Min 5Y
Maximum Drawdown 1Y expresses the financial stress or solvency profile of the business.
Free Cash Flow to Enterprise (FCF to Firm)EQ
Free Cash Flow to Enterprise captures the financial stress or solvency profile of the business.
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