The Formula
Sharpe = (Annual Return − Risk Free Rate) ÷ Annual Std Dev
Annual Return — average daily return × 252 trading days. Your raw reward.
Risk Free Rate — what you'd earn in a US T-bill with zero risk (~4.3% today). The floor below which taking risk makes no sense.
Standard Deviation — how wildly the stock swings day to day, annualised. High beta stocks like yours (3.1–3.2) will have high std dev, which penalises their Sharpe ratio even if raw returns look great.
Interpreting the ratio
< 1.0Poor
1.0 – 1.9Acceptable
2.0 – 2.9Good
3.0 +Excellent