Ungeared beta: Difference between revisions
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imported>Doug Williamson (Link with Equity beta page.) |
imported>Doug Williamson (Link with Ungeared cash flow page.) |
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* [[Equity beta]] | * [[Equity beta]] | ||
* [[Financial risk]] | * [[Financial risk]] | ||
* [[Ungeared cash flow]] | |||
Revision as of 10:48, 18 April 2015
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.
