MSTR - Risk

Pure Price Volatility Risk (Market Swings)

The business itself is financially solid (Financial Health 80/100, minimal insolvency risk). The high overall score (7/7) is driven primarily by extreme stock price swings (±91.0% 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. 3.6x as much as the broader market.

Beta (Market Relation)

3.57x

Above average

Volatility (5Y p.a.)

91.0% p.a.

5-Year Horizon

Max Drawdown (5Y)

-84.1%

5-Year Horizon

Sharpe Ratio

0.15

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.

High Volatility

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	-54.2%
3 Years	90.3%	-82.6%	0.69	+64.5%
5 Years	91.0%	-84.1%	0.15	+16.4%
10 Years	75.3%	-89.3%	0.29	+24.1%

Automated Risk & Health Notes (Red Flags)

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

Exemplary balance sheet strength: Very solid ratio of equity to debt.

High market risk: Beta of 3.57 indicates above-average volatility compared to the broader market.

Structurally High Volatility: Above-average fluctuations persist across 5 to 10 years (91.0% p.a.).

Historical Stress Test: Maximum peak-to-trough drawdown of -89.3% in the extended horizon.