Unlevered Beta Calculator
Calculate unlevered (asset) beta by removing the effects of financial leverage using the Hamada equation.
Unlevering Inputs
Or calculate D/E from market values:
Unlevered Beta (Asset Beta)
0.873
From Levered Beta: 1.200
Risk Decomposition
Business Risk (Asset Beta)0.873
Financial Risk (Leverage Effect)0.327
% of Beta from Leverage27.3%
Leverage Multiplier1.375x
Implied Levered Beta at Different D/E
| D/E Ratio | Levered Beta |
|---|---|
| 0.00 | 0.873 |
| 0.25 | 1.036 |
| 0.50 | 1.200 |
| 0.75 | 1.364 |
| 1.00 | 1.527 |
| 1.50 | 1.855 |
| 2.00 | 2.182 |
Hamada Formula
βU = βL / [1 + (1 - T) × D/E]
= 1.20 / [1 + (1 - 0.25) × 0.50]
= 1.20 / 1.375
= 0.873
= 1.20 / [1 + (1 - 0.25) × 0.50]
= 1.20 / 1.375
= 0.873