A lower unlevered beta for a company implies that the company is less risky compared to the market average. This could be interpreted as a sign of good financial health as the company's returns are less likely to be affected by market volatility.

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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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Capital Budgeting Spreadsheet

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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