Equity Beta and Asset Beta Conversion Excel Model Template
  • Equity Beta and Asset Beta Conversion Excel Model Template
  • Equity Beta and Asset Beta Conversion Excel Model Template
Originally published: 02/10/2018 10:20
Publication number: ELQ-82305-1
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Equity Beta and Asset Beta Conversion Excel Model Template

This Excel template and accompanying video provide a concise explanation of how to conduct an unlevered beta analysis.

analysisassetsbetadebtinvestmentleveredriskunleveredvolatility

Description
This Unlevered Beta and Asset Beta Conversion Template is an efficient and practical Excel model from CFI. With the correct data inputs, the template can automatically calculate a company’s Unlevered Beta.

Beta is the measure of a stock’s volatility in the context of the market. The benchmark for the market is 1.0, and so the Beta of a given company tells us how much the stock swings over a given period by way of its deviation from the market’s 1.0 standard.

Unlevered Beta (Asset Beta) is the company’s Beta score without taking into account the debt that it holds. This tells us the risk of investing into a given company in comparison with the market. This is a very useful tool. When researching companies’ betas, the default that we are usually given is the Levered Beta, which takes into account the debt. By removing this, we can see how risky the assets of a company are, without having to consider the debt.

The accompanying video offers a concise explanation of how to calculate the levered and unlevered beta. It also demonstrates how to fill out the table that is included in the Excel model template.

See CFI’s Channel for additional templates and resources.

This business tool includes
1 Excel Spreadsheet, 1 Youtube

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