How to use this calculator
- Enter observed equity beta, observed debt/equity ratio, assumed tax rate (%), target debt/equity ratio.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
Hamada-style approximation with zero debt beta and constant tax assumptions; market-value leverage is generally relevant.
Worked example
With observed equity beta = 1.2, observed debt/equity ratio = 0.5, assumed tax rate (%) = 20, target debt/equity ratio = 1, unlevered beta is approximately 0.85714286.
What the result means
Separate operating risk from a simplified financing-leverage effect.
Common questions
How should I interpret unlevered beta?
Separate operating risk from a simplified financing-leverage effect.
What should I check before using this result?
Hamada-style approximation with zero debt beta and constant tax assumptions; market-value leverage is generally relevant.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.