Ungeared beta

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Revision as of 20:00, 21 January 2018 by imported>Doug Williamson (Link with Gearing page.)
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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.


See also