Beta Calculator: calculate beta for your business. Formula, benchmarks, and practical tips included.
Beta = Cov(Rstock, Rmarket) ÷ Var(Rmarket)
Unlevered beta = Levered beta ÷ (1 + (1 − tax rate) × D/E)
Re-levered beta = Unlevered beta × (1 + (1 − tax rate) × D/E)
Worked example: Comparable company levered beta 1.4. Debt/equity ratio 0.6. Tax rate 25%. Unlevered beta = 1.4 / (1 + 0.75 × 0.6) = 1.4/1.45 = 0.97. Re-lever at target company D/E 0.3: levered beta = 0.97 × (1 + 0.75 × 0.3) = 1.19.