Unlevered Beta

	Definition of 'Unlevered Beta' A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta of a company without any debt. Unlevering a beta removes the financial effects from leverage. The formula to calculate a company's unlevered beta is: Where: B_Lis the firm's beta with leverage. T_c is the corporate tax rate. D/E is the company's debt/equity ratio.
	Investopedia explains 'Unlevered Beta' This number provides a measure of how much systematic risk a firm's equity has when compared to the market. Unlevering the beta removes any beneficial effects gained by adding debt to the firm's capital structure. Comparing companies' unlevered betas gives an investor a better idea of how much risk they will be taking on when purchasing a firms' stock.
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