Equity Beta is also known as a levered beta since it determines the level of firms debt to equity. It's a financial calculation that indicates the systematic risk of a stock. read more used in the CAPM model.

Is levered beta the same as equity beta?

Levered beta (commonly referred to as just beta or equity beta) is a measure of market risk. Debt and equity are factored in when assessing a company's risk profile. Unlevered beta strips off the debt component to isolate the risk due solely to company assets.

What is the meaning of equity beta?

Levered beta (or “equity beta”) is a measurement that compares the volatility. It indicates the level of risk associated with the price changes of a security. ... For example, a company with a beta of 1.5 has returns that are 150% as volatile as the market it's being compared to.