8996.TW - Risk

Pure Price Volatility Risk (Market Swings)

The business itself is financially solid (Financial Health 65/100, minimal insolvency risk). The high overall score (7/7) is driven primarily by extreme stock price swings (±66.1% p.a.) and steep historical drawdowns.

Volatility Risk

Transparent evaluation of price volatility (SRI), Beta, and historical drawdowns.

Volatility Risk Score

7/7 Very High

7 / 7 SRI Price Fluctuation & Beta

Very high volatility or fundamental risks. Significant loss potential; strictly for aggressive investors. Moves approx. 1.6x as much as the broader market.

Beta (Market Relation)

1.6x

Above average

Volatility (5Y p.a.)

66.1% p.a.

5-Year Horizon

Max Drawdown (5Y)

-66.5%

5-Year Horizon

Sharpe Ratio

1.61

Return / Risk

Speculative / High Risk: Score Basis:

Multi-Horizon Risk & Performance Matrix

Historical volatility, drawdowns, and risk-adjusted return across 1, 3, 5, and 10 years.

Volatility Expansion (3Y > 5Y) High Volatility

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	+326.4%
3 Years	70.0%	-66.5%	1.12	+83.2%
5 Years	66.1%	-66.5%	1.61	+108.7%
10 Years	54.7%	-66.5%	0.69	+40%

Automated Risk & Health Notes (Red Flags)

Single Stock Risk: Investing in an individual stock carries full company and insolvency risk (no fund diversification).

High market risk: Beta of 1.60 indicates above-average volatility compared to the broader market.

🔴 High valuation risk: Avg P/E of 115.3 (Elevated multiple compression risk)

Strong cyclicality: The business model is sensitive to economic downturns.

🔴 Low analyst coverage – higher uncertainty in growth estimates & projections

Structurally High Volatility: Above-average fluctuations persist across 5 to 10 years (66.1% p.a.).

Historical Stress Test: Maximum peak-to-trough drawdown of -66.5% in the extended horizon.