Are these short definitions correct?
Unlevered FCF v. Levered FCF => Unlevered FCF includes interest/debt payment.
Unlevered Beta v. Levered Beta => levered beta includes company interest/debt payment.
I'm confused, because definition of levered seems "flipped" depending on whether you're talking about FCF or Beta. What's the explanation?
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definitons are correct. just one correction: levered beta includes leverage as in debt over equity as you can see in the formula, ie no payments
Unlevered FCF does not take into account your interest payments. If you think about the formula for EV, your FCF will be unlevered (numerator) and your beta and WACC (denominator) will be levered.
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