Assessing Stock Valuation Using Capital Asset Pricing Model: A Case Study of BSE-Listed Companies

Author(s)	Ms. Sheetal, Dr. Anita, Dr. Manjeet Sharma
Country	India
Abstract	Abstract Risk and return must be carefully balanced when making investment decisions, and this can be assessed using organized financial frameworks. This study ascertains whether some equity shares exhibited price inefficiencies or followed market equilibrium. The primary objective is to use the Capital Asset Pricing Model (CAPM) to examine and contrast the risk-adjusted performance of three different equities listed on the BSE Sensex. Market beta was used to compute expected returns, which were then contrasted with the assets’ actual average returns. Significant variations in risk and performance among the chosen assets are shown by the empirical results. These findings support the recommendations that investors should purchase cheap equities, such as JSW Steel, in order to maximize risk-adjusted gains. On the other hand, in order to shield their portfolios from unrewarded market volatility, investors should steer clear of or sell overpriced equities like HDFC Bank and Infosys.
Keywords	Keywords: Capital Asset Pricing Model (CAPM), Bombay Stock Exchange (BSE) Sensex, HDFC Bank, JSW Steel, Infosys.
Field	Sociology > Banking / Finance
Published In	Volume 8, Issue 3, May-June 2026
Published On	2026-05-30
DOI	https://doi.org/10.36948/ijfmr.2026.v08i03.79959

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