Como Calcular La Beta (Para Valorar Empresas)

First of all, I will assume that you are trying to get the beta of the equity, not the beta of assets. The difference will be clear later. For now, let's say that the beta of the assets is the betaof the company if the company were totally financed with equity (no debt). Beta equity, on the other hand is the beta of the equity given the level of debt the company has.

First, you need toidentify companies that are very similar to your company. Ideally, you should get companies similar in sizes and in business. In some cases, you need to eliminate some competitors as they are verydiversified. For instance, Citi and HSBC are both financial companies and direct competitors in the US, but the overall geography and the mix of financial services they offer make them similar only on the USand not as a whole.

Second step is to obtain the betas of the companies. There are multiple websites for that. Keep in mind that you are getting the beta equity for the identified companies.Beta of equity is impacted by leverage. A highly levered company will have a higher beta of equity just because of the debt (equity is subordinate to debt so in the event of distress equity holders arepaid after debt holders are, if there is anything left.). So, before you average them, delever the beta. That is, obtain the beta of the assets. Beta of assets measures the systemic risk of theassets (read, the company) and makes it possible to just average them. Use the following equation

Bu = Be * E / (D+E), where Bu=Beta unlevered, Be = Beta equity, D=market value of debt (if no marketvalue of debt is found, use book value as they should be similar), and E=market value of equity (use # shares * price per share). Use Be, E and D specific to each company you identified as similar.Now that you have beta of assets, average them (simple average). You have found the average beta of the assets for the industry you have selected.

If you were looking for the beta of assets,...