• Sharebar

Dear Bankers,

Following are the formulas -

Unlevered Beta = Levered Beta / (1 + ((1 - Tax Rate) x (Debt/EQUITY)))

Levered Beta = Unlevered Beta x (1 + ((1 - Tax Rate) x (Debt/EQUITY)))

My question -

In the Debt/EQUITY part the EQUITY is Book Value of Equity or the Market Value or Enterprise Value ?

The WSO Advantage - Investment Banking

Financial Modeling Training

IB Templates, M&A, LBO, Valuation + Learn More.

IB Interview Prep Pack

30,000+ sold & REAL questions Learn More.

Resume Help from Actual IB Pros

Land More IB Interviews. Learn More.

Find Your Perfect IB Mentor

Realistic IB Mock Interviews. Learn More.

Comments (3)

  • CubicleCrowd's picture

    yep market value


  • ibhopeful532's picture

    To unlock this content for free, please login / register below.

    Connecting helps us build a vibrant community. We'll never share your info without your permission. Sign up with email or if you are already a member, login here Bonus: Also get 6 free financial modeling lessons for free ($200+ value) when you register!