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  • Equity Beta and Asset Beta Conversion Equity - Asset Beta

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    GolamMostafa
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    This document contains a table that shows how to convert between equity betas and asset betas for 5 stocks using their respective tax rates, net debt, equity values, and debt to equity ratios. The average and median values are also reported at the bottom. Converting from equity to asset beta involves using the listed financial information to calculate an unlevered asset beta from the levered equity beta. Converting from asset to equity beta uses the same process in reverse to calculate the levered equity beta from the given asset beta.

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    Equity-Beta-and-Asset-Beta-Conversion.xlsx

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    This document contains a table that shows how to convert between equity betas and asset betas for 5 stocks using their respective tax rates, net debt, equity values, and debt to equity ratios. The average and median values are also reported at the bottom. Converting from equity to asset beta involves using the listed financial information to calculate an unlevered asset beta from the levered equity beta. Converting from asset to equity beta uses the same process in reverse to calculate the levered equity beta from the given asset beta.

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    © All Rights Reserved
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    33 views1 page

    Equity Beta and Asset Beta Conversion Equity - Asset Beta

    Uploaded by

    GolamMostafa
    This document contains a table that shows how to convert between equity betas and asset betas for 5 stocks using their respective tax rates, net debt, equity values, and debt to equity ratios. The average and median values are also reported at the bottom. Converting from equity to asset beta involves using the listed financial information to calculate an unlevered asset beta from the levered equity beta. Converting from asset to equity beta uses the same process in reverse to calculate the levered equity beta from the given asset beta.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 1

    Equity Beta and Asset Beta Conversion

    Equity -> Asset Beta


    Levered Bet Equity Beta Tax Rate Net Debt ($M) Equity ($M) Debt/Equity Asset Beta
    Stock 1 1.21 35% 524 2,542 21% 1.07
    Stock 2 1.08 33% - 15,298 0% 1.08
    Stock 3 0.87 28% (255) 3,275 -8% 0.92
    Stock 4 1.58 34% 785 1,027 76% 1.05
    Stock 5 1.35 30% 1,027 9,217 11% 1.26

    Average 1.22 32% 416 6,272 20% 1.07


    Median 1.21 33% 524 3,275 11% 1.07

    Asset -> Equity Beta


    Levered Bet Asset Beta Tax Rate Net Debt ($M) Equity ($M) Debt/Equity Equity Beta
    Stock 1 1.07 35% 524 2,542 21% 1.21
    Stock 2 1.08 33% - 15,298 0% 1.08
    Stock 3 0.90 28% (155) 3,275 -5% 0.87
    Stock 4 1.05 34% 785 1,027 76% 1.58
    Stock 5 1.26 30% 1,027 9,217 11% 1.35

    Average 1.07 32% 436 6,272 21% 1.22


    Median 1.07 33% 524 3,275 11% 1.21

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