Ungeared beta: Difference between revisions
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imported>Doug Williamson (Link with Gearing page.) |
imported>Doug Williamson (Classify page.) |
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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. | ||
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* [[Gearing]] | * [[Gearing]] | ||
* [[Ungeared cash flow]] | * [[Ungeared cash flow]] | ||
[[Category:Corporate_finance]] | |||
Revision as of 13:07, 2 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.
