What is '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_{L }is the firm's beta with leverage.
T_{c} is the corporate tax rate.
D/E is the company's debt/equity ratio.
BREAKING DOWN '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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How do I unlever beta?
Learn how to calculate the unlevered beta of a company and understand the differences between standard beta versus unlevered ... Read Answer >> 
How does unlevered beta help in risk management?
Find out how unlevered beta can be used in risk identification and management, specifically as it relates to the CAPM valuation ... Read Answer >> 
How should investors interpret unlevered beta?
Learn what unlevered beta is, how it is calculated, and how investors can interpret the unlevered betas of companies within ... Read Answer >> 
What are the practical uses for unlevered beta?
Understand the practical uses for a security's unlevered beta, and learn why investors should rely on a security's unlevered ... Read Answer >> 
When is it better to use unlevered beta than levered beta?
Understand what a security's unlevered beta and levered beta measure, and learn which one is more accurate in measuring a ... Read Answer >> 
Why do I need to unlever beta when making WACC calculations?
Dive into weighted average cost of capital calculations, and see why firms both unlever and relever beta to compare debt ... Read Answer >>