Enter the total unlevered beta, tax rate, debt, and equity into the calculator. The calculator will evaluate and display the levered beta.
- Debt to Equity Ratio Calculator
- Equity Value Calculator
- Equity Multiplier Calculator
- Unlevered Beta Calculator
Levered Beta Formula
The following equation is used to calculate a levered beta.
Levered Beta = Unlevered Beta * [1 + (1 – T) * (D / E)]
- Where T is the tax rate (%)
- D is the total debt
- E is the total equity
Levered Beta Definition
Levered beta is a measure of a risk of a companies stock when analyzing the rate of return of a stock using CAPM. It takes into account the companies debt to equity ratio in order to come up with a risk factor that can be used as an investing metric.
Levered Beta Example
How to calculate levered beta?
- First, determine the tax rate.
Determine the effective tax percentage.
- Next, determine the total debt.
Calculate the total debt.
- Next, determine the total equity.
Calculate the total equity.
- Finally, calculate the levered beta.
Calculate the levered beta using the formula above.
FAQ
Levered beta is a measure of risk of a stock or business based on their tax rate, total debt, and total equity.
| levered beta calculator |
| levered beta |
| how to calculate levered beta |
| unlevered beta |
| unlevered beta formula |
| levered beta formula |
| asset beta formula |
| levered and unlevered beta |
| how to calculate unlevered beta |
| levered unlevered beta |
| relever beta formula |
| relevering beta |
| levered beta and unlevered beta |
| unlevered beta calculator |
| asset beta and equity beta |
| asset beta equity beta |
| levered equity beta |
| how to find unlevered beta |
| unlevered beta equation |
| levered beta meaning |
| asset beta calculation |
| levered beta definition |
| unlevered asset beta |
| levered beta equation |
| unlevered equity beta |
| delever beta |
| unlevering |
| difference between asset beta and equity beta |
| levered equity beta formula |
| capm levered beta |
| unlevered beta levered beta |
| levered and unlevered beta formula |
| wacc unlevered beta |
| unlevered beta definition |
| unlevered beta to levered beta formula |
| cost of equity levered beta |
| unlevered beta formula cfa |
| average unlevered beta |
| unlevered asset |
| average levered beta |
| unlevered asset beta formula |
