Unlevered Beta Calculator
The Unlevered Beta Calculator helps determine the risk of a company without factoring in its debt. This tool allows you to calculate the unlevered beta, which is useful for understanding the pure market risk of a company. It provides insight into the inherent volatility of a business in relation to market fluctuations.
Unlevered Beta Calculator
Enter the Levered Beta, the Debt-to-Equity Ratio, and the Tax Rate to calculate the Unlevered Beta.
What is the Unlevered Beta Calculator?
The Unlevered Beta Calculator is a tool that allows investors and analysts to calculate the risk or volatility of a company without considering its debt. The calculator gives the unlevered beta value, which represents the market risk based solely on the company's equity.
How to Use the Unlevered Beta Calculator Website?
To use the Unlevered Beta Calculator, simply input the company's levered beta, its debt-to-equity ratio, and the tax rate. After entering these values, click the "Calculate" button to get the unlevered beta.
Formula of Unlevered Beta
The formula for calculating the Unlevered Beta is as follows:
Unlevered Beta = Levered Beta / (1 + (1 - Tax Rate) * Debt-to-Equity Ratio)
Advantages and Disadvantages of the Unlevered Beta Calculator
Advantages:
- Helps determine the risk of a company without considering its debt structure.
- Useful for assessing a company's pure market risk.
- Helps in investment analysis and decision-making.
Disadvantages:
- Does not take into account the company’s financial structure, which can be significant.
- The accuracy depends on the accuracy of the input values.