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Betas and Leverage
  • Betas and Leverage
Originally published: 20/06/2016 16:49
Last version published: 25/10/2016 08:17
Publication number: ELQ-49578-3
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Betas and Leverage

Obtain a table of betas at different debt ratios

Prof. Aswath Damodaranby Prof. Aswath Damodaran
Professor at NYU Stern School of BusinessFollow 1,062
NYU Stern School of Businesswith NYU Stern School of Business
An Education in PossibleFollow 56
19 reviews2,060 views|Start the discussion!|Bookmark download for free
financestockbetasleveragedebt ratiosdebt equity ratio
Description
This spreadsheet allows you to enter the current beta, tax rate and the debt equity ratio for your stock, and obtain a table of betas at different debt ratios.

Note: this model is being shared with the authorization of Professor Aswath Damodaran from NYU Stern Business School (www.damodaran.com)

This Best Practice includes
1 Excel Model File

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Further information

The objective of this model is to get the following output values:
- Unlevered Beta for the firm (based upon average debt/equity ratio)
- Current Beta for the firm (based upon current debt/equity ratio)
- Levered Beta based upon this debt/equity ratio


4.8 / 5 (19 votes)

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