unlever

[alimesoda]

formula for unlevering beta?

 

[mcf]

Levered Beta is approximately = Unlevered (1/(d/e))

 

[mcf]

And you may also recall seeing the formula in the LBO model section stating
equity beta = asset beta / (e/(d+e)

 

[philip.platt]

From Equity, in order to estimate Beta for private companies:
Unlever, Step 1: Unlevered Beta = (1 / (1+ D/E)) * Equity Beta
Relever, Step 2: Equity Beta = (1 + (D/E)) * Unlevered Beta

 

[alimesoda]

thank you good luck!