Founder Blog

BETA CALCULATION - DO IT YOURSELF

29 Jun 2018

Dear Professional Colleague,
 
On account of recent Regulatory changes in the filed of Valuation, its now of utmost important that we familiarize our self with different methods of valuation for securities or financial assets.
 
DCF is one of them, and BETA is a very important component of Weighted Average Cost of Capital, which is used in the DCF method.
 
For listed entity BETA can be calculated based on quotations of the security available from various websites.
 
For unlisted entity BETA can be calculated by taking average BETA of similar listed companies for whom BETA is readily available.
 
I have tried to present the calculation in simple steps.
 
Hope it will be of help to all.
 
Feel free for any clarification and write a mail.
 

BETA CALCULATION - DO IT YOURSELF

Comments