article thumbnail

What is Beta in Finance, and why is it Essential for a Business Valuation?

Equilest

What is Beta in Finance, and why is it essential for a business valuation? Are you considering evaluating a business using an excel template without understanding Beta in Finance? In statistics, beta is defined as the slope of a straight line. Why is beta important in valuing companies? Think again!

Beta 40
article thumbnail

Beta?! Not just Beta - The Levered Beta!

Equilest

Have you wondered what Levered-Beta is? A small valuation quiz: Two companies. Because of the Levered-Beta (Known also as the Leveraged Beta). . Because of the Levered-Beta (Known also as the Leveraged Beta). . What is Beta? Beta describes the firm's sensitivity to what is happening in the market.

Beta 40
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

Top 10 Benefits of Using AI for Business Valuation

Equilest

Discover how AI can revolutionize your business valuation process and provide a competitive edge. Read more to explore the top 10 benefits of using AI for business valuation. How does AI enable higher pricing for valuation reports? Let's dive into the top 10 benefits of using AI for business valuation.

article thumbnail

Why Excel is not an Effective Business Valuation Tool?

Equilest

While Excel may be a popular tool for business analysis, it falls short when it comes to accurate business valuations. With limited features and formulas, it can be difficult to account for all the necessary parameters in a valuation, such as interest rates, equity risk premiums, and beta.

article thumbnail

What is Systematic Risk? And why it's Essential to Business Valuation

Equilest

And why it's essential to business valuation. Many entrepreneurs and business owners think that risk means loss. Systematic risk is measured using beta - which expresses the sensitivity of the company's situation relative to the state of the economy. In this article, we have discussed the impact of Beta on valuation.

article thumbnail

What is Systematic Risk? And why it's Essential to Business Valuation

Equilest

And why it's essential to business valuation. Many entrepreneurs and business owners think that risk means loss. Systematic risk is measured using beta - which expresses the sensitivity of the company's situation relative to the state of the economy. In this article, we have discussed the impact of Beta on valuation.

article thumbnail

Data Update 6 for 2025: From Macro to Micro - The Hurdle Rate Question!

Musings on Markets

While much of the discussion of this measure gets mired in the capital asset pricing model, and the supposed adequacies and inadequacies of beta, I think that too much is made of it, and that the model is adaptable enough to allow for other measures of relative risk. Corporate Default Risk , i.e,