Unleveraged beta

Unleveraged beta

The beta of an unleveraged required return (i.e., no debt) on an investment when the investment is financed entirely by equity.

Unleveraged Beta

A measure of an asset or company's volatility with respect to a market index when the asset or company has been financed entirely with equity. That is, the unleveraged beta helps determine the asset company's risk when it has no debt.
References in periodicals archive ?
The WACC calculation is a bit subjective as a lot of assumptions have to be taken into account: the market risk premium depends on a assumption regarding the perpetuity growth rate of the listed firms' dividends; when the firm is listed, the cost of equity can either include its beta (which is different according to the data provider) or a leveraged beta based on the industry's unleveraged beta, which depends on the peers which have been included in the sample; the weighting coefficients can correspond to a target--or normative--financial structure or be based on an iterative calculation.