Unlevered Return

Definition

Unlevered Return is the return on an investment without taking into account the effect of financial leverage, providing a clearer picture of the investment’s performance.

Usage and Context

Unlevered return shows an investment's performance without the effects of financial leverage.

Frequently Asked Questions

What is unlevered return on investment?
Unlevered return on investment shows the return without considering debt, highlighting pure equity returns.

What is the difference between unlevered and levered return?
Unlevered return measures return without considering debt, while levered return accounts for the effects of debt on the investment's return.

What does "unlevered" mean in finance?
In finance, "unlevered" means a company has no debt, and its performance is assessed without the effect of borrowed funds.

Related Software

Excel, QuickBooks

Benefits

Unlevered return assesses investment performance, excluding the effects of financial leverage.

Conclusion

Unlevered return assesses investment performance without considering the effects of financial leverage.