Unlevered Beta Calculator

It is the beta of a company assuming that the company does not have any debt, that is, the beta of an unlevered company. And Unlevered Beta Calculator is made to help one in such calculations. It is also known as asset beta. Unlevered Beta is a measure of the systematic risk of assets only. It helps in making a comparison between companies having different debt-equity ratios.

For calculating unlevered beta, beta of a levered company (it should be publicly listed also) from the same industry can be considered. First, you have to calculate the beta of such a publicly listed levered company which will eventually help calculate the unlevered beta.

For calculating Unlevered Beta, take the below-stated formula into account:

Unlevered Beta = Levered Beta / [1 + {(1 – Tax Rate) (Debt / Equity)}]

Unlevered Beta Calculator

How to Calculate using Calculator?

For effortless calculation of unlevered beta, just provide the calculator with the following figures:

Levered Beta – Levered beta, or commonly known as a beta coefficient, is the measure of the relative risk of investment with its market. It can be calculated by dividing covariance between the return on security and market return by the variance of the market return.

You can use our Beta calculator for a quick calculation – Beta Calculator

Tax Rate – Enter the tax rate applicable to the company.

Debt–Equity Ratio – It is the ratio of debt to equity of a company. It can be derived by dividing debt from equity. This ratio is divided to eliminate the effect of debt from the calculation of levered beta.

Excel Calculator – Unlevered Beta

You can also download our excel based calculator for unlevered beta.

Excel Calculator For Unlevered Beta (80 downloads )

Sanjay Borad

Sanjay Bulaki Borad

MBA-Finance, CMA, CS, Insolvency Professional, B'Com

Sanjay Borad, Founder of eFinanceManagement, is a Management Consultant with 7 years of MNC experience and 11 years in Consultancy. He caters to clients with turnovers from 200 Million to 12,000 Million, including listed entities, and has vast industry experience in over 20 sectors. Additionally, he serves as a visiting faculty for Finance and Costing in MBA Colleges and CA, CMA Coaching Classes.

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