## How to calculate unlevered beta?

Firstly,determine the levered beta of the subject company. Usually,the levered beta of publicly listed companies can be derived from the market.

**What is beta important use of calculations?**

Beta is a component of the capital asset pricing model (CAPM), which is used to calculate the cost of equity funding. The CAPM formula uses the total average market return and the beta value of the stock to determine the rate of return that shareholders might reasonably expect based on perceived investment risk.

**How to relever beta?**

Find out the Unlevered Beta

### How to calculate Beta using the market return?

Top 3 Formula to Calculate Beta Covariance/Variance Method. To calculate the covariance, we must know the return of the stock and also the return of the market, which is taken as a benchmark value. By Slope Method in Excel. We can also calculate Beta by using the slope function in excel. Correlation Method. Beta can also be calculated using the correlation method.