Definition
Unlevered Beta is a measure of how much risk a company`s equity has without the effect of debt, used in evaluating the volatility of a company without financial leverage.
Usage and Context
Unlevered beta shows a company`s risk without considering debt, indicating equity volatility without leverage.
Frequently asked questions
What is unlevered beta in business risk? Unlevered beta measures a company`s market risk without considering its debt, reflecting how volatile its equity is.

Is beta affected by leverage? Yes, beta is affected by leverage, as increasing a company`s debt raises its risk and, consequently, its beta.

What is the unlevered beta of the cost of equity? The unlevered beta of the cost of equity measures the volatility of a company`s stock without the effect of debt, showing its inherent business risk.
Related Software
Bloomberg Terminal, Yahoo Finance
Benefits
Unlevered beta measures a company`s risk without considering debt, providing a clearer view of equity volatility.
Conclusion
Unlevered beta gives a clearer picture of a company`s risk profile by excluding the effects of debt.
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