Remove the effect of debt from a levered beta.
Please do not make financial decisions based on these results.
What is the Unlevered Beta Calculator?
Remove the effect of debt from a levered beta. To use the Unlevered Beta Calculator, enter levered beta, debt, equity, tax rate; it returns unlevered beta, debt to equity, and shows them instantly as you type.
Where the Unlevered Beta Calculator fits
Remove the effect of debt from a levered beta. The main figure it returns is the Unlevered beta, worked out from the values you enter.
It belongs with the other stocks & equity analysis tools. If you are comparing options or checking a result from another angle, try the Beta Relever Calculator, Beta Stock Calculator or the Portfolio Beta Calculator.
How to use the Unlevered Beta Calculator
- Enter your numbers. Start with Levered beta, Debt ($), Equity ($), then fill in Tax rate (%). Take price and share figures from the latest filing or quote. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Unlevered beta, and the cards below show Debt to equity. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Unlevered Beta Calculator using the default values shown in the calculator above:
Inputs
| Levered beta | 1.3 |
|---|---|
| Debt ($) | 3,000,000 |
| Equity ($) | 7,000,000 |
| Tax rate (%) | 23 |
Results
| Unlevered beta | 0.98 |
|---|---|
| Debt to equity | 0.43 |
With these inputs the calculator returns Unlevered beta: 0.98. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Levered beta from 1.3 to 1.56 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Unlevered beta | 0.98 | 1.17 | +20% |
| Debt to equity | 0.43 | 0.43 | 0% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Unlevered Beta Calculator reports Unlevered beta and debt to equity. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
Why unlever beta?
To compare the pure business risk of companies with different debt levels.
Where do I find the inputs?
Company filings (10-K and 10-Q), investor relations pages and your broker show earnings, equity, debt and share counts.
Which valuation ratio should I trust?
No single ratio is enough. Compare several multiples with the company’s own history and its industry peers.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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