ZEG.L - Risk

Pure Price Volatility Risk (Market Swings)

The business itself is financially solid (Financial Health 50/100, minimal insolvency risk). The high overall score (7/7) is driven primarily by extreme stock price swings (±161.5% 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 approx. 3.4x as much as the broader market.

Beta (Market Relation)

3.39x

Above average

Volatility (5Y p.a.)

161.5% p.a.

5-Year Horizon

Max Drawdown (5Y)

-79.2%

5-Year Horizon

Sharpe Ratio

0.38

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	—	—	—	+36.8%
3 Years	207.1%	-23.6%	1.36	+284.8%
5 Years	161.5%	-79.2%	0.38	+64.1%
10 Years	115.5%	-82.7%	0.25	+31.4%

Automated Risk & Health Notes (Red Flags)

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

Unprofitable business model: The company is currently generating net losses.

High market risk: Beta of 3.39 indicates above-average volatility compared to the broader market.

🔴 High valuation risk: Avg P/E of 1120.8 (Elevated multiple compression risk)

Elevated Short-Term Volatility: 3Y volatility (207.1%) is noticeably higher than the 5Y average (161.5%).

Structurally High Volatility: Above-average fluctuations persist across 5 to 10 years (161.5% p.a.).

Historical Stress Test: Maximum peak-to-trough drawdown of -82.7% 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

6 ISS Score: 6 / 10

Board Risk

8 ISS Score: 8 / 10

Short Ratio