How do you determine beta value?

The beta value of a stock measures its volatility relative to the overall market, typically represented by a benchmark index like the S&P 500. To calculate beta, you can use historical price data for both the stock and the market index, applying the formula: Beta = Covariance(Returns of the stock, Returns of the market) / Variance(Returns of the market). Alternatively, financial platforms and tools often provide beta values directly, reflecting the stock's historical performance over a specified period.