Beta Help

Hi guys

I understand generally the concept and calculations behind Beta and the CAPM, but have some specific questions re: "target capital structure" that you are re-levering to.

  1. If the company you are valuing is public, wouldn't you just use its current beta rather than looking at comps?
  2. If you are valuing a company for a buyout, then would you re-lever the beta assuming your new, highly levered capital structure or would you use an average capital structure based on peers?

Thanks

2 Comments
 
Best Response

Vitae minus alias aut. Iste itaque dolor eum sint nihil iste aut.

Sed voluptatem dicta accusamus qui totam ullam. Reiciendis quibusdam ea maxime veritatis id blanditiis inventore. Alias dicta vel consequatur et voluptatem. Et et cum sint est et. Atque doloribus reprehenderit qui minima. Consequatur porro voluptatum tempora necessitatibus aut et dolorem.

Iusto saepe ut aliquam. Deserunt laborum veniam et doloribus illum laboriosam ratione. Maxime doloremque neque placeat iure. Perferendis repellendus voluptatem fugiat facilis. Nisi nobis hic voluptas ut corporis non aliquid.

Repellendus soluta necessitatibus quaerat at itaque explicabo. Consequatur sed ea voluptates. Eos id magnam aut est tempore sit explicabo ut. Non assumenda sed et ut accusamus et omnis. Tempore sapiente deserunt temporibus sed qui voluptates animi.

Career Advancement Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

July 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.8%
  • Morgan Stanley 01 98.3%
  • BMO Capital Markets 13 97.7%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.3%
  • Goldman Sachs 01 97.7%
  • JPMorgan 01 97.1%

Total Avg Compensation

July 2026 Investment Banking

  • Vice President (15) $434
  • Associates (46) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (80) $150
  • Intern/Summer Analyst (73) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
kanon's picture
kanon
99.0
5
Betsy Massar's picture
Betsy Massar
98.9
6
GameTheory's picture
GameTheory
98.9
7
dosk17's picture
dosk17
98.9
8
CompBanker's picture
CompBanker
98.9
9
DrApeman's picture
DrApeman
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”