LOTB.BR - Risk

Pure Price Volatility Risk (Market Swings)

The business itself is financially solid (Financial Health 90/100, minimal insolvency risk). The high overall score (7/7) is driven primarily by extreme stock price swings (±26.5% 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 noticeably less than the broader market (0.6x).

Beta (Market Relation)

0.61x

Defensive

Volatility (5Y p.a.)

26.5% p.a.

5-Year Horizon

Max Drawdown (5Y)

-42.2%

5-Year Horizon

Sharpe Ratio

0.59

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.

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	+59.1%
3 Years	27.0%	-42.2%	0.68	+21%
5 Years	26.5%	-42.2%	0.59	+18%
10 Years	25.4%	-42.2%	0.63	+18.6%

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 valuation risk: Avg P/E of 51.5 (Elevated multiple compression risk)

Historical Stress Test: Maximum peak-to-trough drawdown of -42.2% in the extended horizon.

Corporate Governance & ISS Scores

Shareholder rights, board structure and audit safety (Scale 1 = Low Risk, 10 = High Risk)

Overall Governance Risk

9 ISS Score: 9 / 10

Audit Risk

5 ISS Score: 5 / 10

Board Risk

8 ISS Score: 8 / 10

Short Ratio