Q:
# How Do You Calculate Unlevered Beta?

**The formula for unlevered beta is levered beta divided by the sum of one plus the product of the complement of the corporate tax rate times the company's debt to equity ratio.** Unlevered beta gives the volatility of the company while removing the benefits of debt.

The beta value gives the volatility of a company's share price compared to the market. A company with a beta greater than one is more volatile than the market as a whole, while a company with a beta less than one is less volatile than the market as a whole. Unlevered beta removes the benefits of debt, demonstrating how the company is doing without the benefits it receives from leveraged assets.

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