RiskBeta#114
Selling General & Administrative to Revenue captures the financial stress or solvency profile of the business.
By Javier Sanz, Founder & Lead AnalystEditorially reviewed
Last updated: Reviewed by: Javier Sanz
Formula
Covariance(Stock, Market) / Variance(Market) over 60 months
Description
Measures the stock's sensitivity to overall market movements over the past five years using monthly returns. A beta of 1.0 means the stock moves in line with the market. Beta is a key input in the Capital Asset Pricing Model (CAPM) for calculating cost of equity.
Interpretation
0.5-1.2 is the ideal range for most value investors. Below 0.5 indicates a defensive stock that moves less than the market. Above 1.5 means the stock amplifies market moves, adding volatility. Negative beta (very rare) means the stock moves inversely to the market.
Related metrics: Beta (Market Sensitivity), 52-Week Price Volatility, Maximum Drawdown 1Y (Max Drawdown). (Updated 2026)
Further Reading
- SEC EDGAR primary filings on Selling General & Administrative to Revenue (SGA/Revenue)- Primary source filings used to calculate Selling General & Administrative to Revenue (SGA/Revenue).
FAQ
How is Selling General & Administrative to Revenue calculated?+
Selling General & Administrative to Revenue uses the formula: Covariance(Stock, Market) / Variance(Market) over 60 months. 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 Selling General & Administrative to Revenue value by sector?+
There is no single 'good' value for Selling General & Administrative to Revenue — context is sector-driven. compare against sector median on /screener with the Sector filter applied. The /screener exposes sector-relative percentiles for Selling General & Administrative to Revenue on every ticker, so you can compare against the sector median rather than the broad-market median.
Which investors use Selling General & Administrative to Revenue?+
Howard Marks, Seth Klarman, Bill Ackman in distressed scenarios cite Selling General & Administrative 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 Selling General & Administrative to Revenue?+
Selling General & Administrative to Revenue can mislead in asset-heavy industries where leverage ratios understate true risk. Pair Selling General & Administrative 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 Selling General & Administrative to Revenue data?+
Visit any /stock/[ticker] page on ValueMarkers to see live Selling General & Administrative to Revenue data, sector percentiles, and the VMCI composite score that integrates Selling General & Administrative to Revenue with 119 other indicators across 100,000+ stocks. The free /screener exposes Selling General & Administrative to Revenue as a filterable column.
Used in these guides
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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