Which financial metric typically reflects the volatility of a tech company's stock?

The financial metric that typically reflects the volatility of a tech company's stock is levered beta. Levered beta is a measure that reflects how much a company's stock price fluctuates in relation to the overall market. It takes into account the company's capital structure, including its debt levels, which can amplify the stock's volatility.

In the tech industry, where companies often experience significant growth and market fluctuations, understanding the volatility is essential for investors. A higher beta indicates that the stock is more volatile compared to the market, suggesting that it will experience larger price swings. This can be particularly relevant for investors looking to assess the risk associated with investing in volatile tech stocks.

The other metrics provided, such as the debt/equity ratio, operating margin, and free cash flow, do not directly measure stock volatility. The debt/equity ratio focuses on a company's leverage, operating margin assesses profitability, and free cash flow indicates the cash generated by the company after expenditures. These metrics serve different purposes in financial analysis and do not encapsulate stock volatility like levered beta.