Ungeared beta: Difference between revisions
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The ungeared beta is calculated from the observed beta; to reflect the beta value which would be observed if the company were all equity financed. | The ungeared beta is calculated from the observed beta; to reflect the beta value which would be observed if the company were all equity financed. | ||
It is therefore indicative of the business risk of the company. | It is therefore indicative of the business risk of the company. | ||
The ungeared beta is also called the asset beta. | |||
The ungeared beta is also called the ''asset beta.'' | |||
== See also == | == See also == | ||
* [[ | * [[Beta]] | ||
* [[Business risk]] | * [[Business risk]] | ||
* [[Equity beta]] | |||
* [[Financial risk]] | * [[Financial risk]] | ||
* [[Gearing]] | |||
* [[Ungeared ]] | |||
* [[Ungeared cash flow]] | |||
[[Category:Corporate_finance]] | |||
Latest revision as of 08:45, 7 July 2022
The observed beta value for a company incorporates financial and business risk.
The ungeared beta is calculated from the observed beta; to reflect the beta value which would be observed if the company were all equity financed.
It is therefore indicative of the business risk of the company.
The ungeared beta is also called the asset beta.
