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A company can lower its unlevered beta by reducing its operational risk. This can be achieved by diversifying its product or service offerings, entering into stable markets, or improving operational efficiency. Additionally, maintaining a strong financial position with low levels of debt can also help in reducing the unlevered beta.
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Are you looking to determine which investment opportunities are best for your company, especially when multiple options are available? How can you tel...
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If you also want to compare your investment's performance against other opportunities, the WACC tab is the way to go. The Weighted Average Cost of Capital (WACC) tab represents the average rate a company should pay to finance its assets. At the center of WACC is the "unlevered beta". A higher unlevered beta means that a company is more volatile and riskier than the market average, while a lower unlevered beta means that a company is less risky.
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