End Game

Variable
Number of firms

Average Unlevered Beta

Average Levered Beta

Average correlation with the market

Total Unlevered Beta

Total Levered Beta

To estimate risk in a company from the perspective of a completely undiversified investor (with all

Explanation
Number of firms in the indusry grouping.
Unlevered beta, corrected for cash, of companies in the business. See the
beta spreadsheet for details of calculation.
Levered beta, corrected for cash, of companies in the busines and using
the aggregate debt to equity ratio of companies in the group. See the
beta spreadsheet for details.
Correlation of stock with the market index, using two years of weekly
returns, averaged across stocks in the group.
Total Unlevered Beta = Unlevered Beta/ Correlation with the market.
Expands risk measure to include all risk in the firm, not just the market
risk.
Total Levered Beta = Levered Beta/ Correlation with the market. Expands
risk measure to include all risk in the firm, not just the market risk.
a completely undiversified investor (with all of his or her money invested just in one company)

Why?
Law of large numbers?
Income subject to taxation, allowing for all dedutions allowed by tax law, reported in income statement.

Accrual estimate of taxes payable

Cash taxes paid

Expands risk measure (beta), before considering debt, to include company-specific risk that would normally
be diversified away, be acuse investor is not diversified.

Expands risk measure (beta), after incorporating risk added by debt, to include company-specific risk that
would normally be diversified away, be acuse investor is not diversified.
Date updated: 5-Jan-22
Created by: Aswath Damodaran, adamodar@stern.nyu.edu
What is this data? Total Beta (beta for completely undiversified investor)
Home Page: http://www.damodaran.com
Data website: https://www.stern.nyu.edu/~adamodar/New_Home_Page/data.html
Companies in each industry: https://www.stern.nyu.edu/~adamodar/pc/datasets/indname.xls
Variable definitions: https://www.stern.nyu.edu/~adamodar/New_Home_Page/datafile/varia

Industry Name Number of firms Average Unlevered Beta

Advertising 348 1.18
Aerospace/Defense 272 1.11
Air Transport 151 0.94
Apparel 1170 0.90
Auto & Truck 152 1.11
Auto Parts 728 1.44
Bank (Money Center) 610 0.59
Banks (Regional) 816 0.67
Beverage (Alcoholic) 219 0.86
Beverage (Soft) 100 0.82
Broadcasting 139 0.81
Brokerage & Investment Banking 599 0.45
Building Materials 449 1.05
Business & Consumer Services 948 1.04
Cable TV 54 0.72
Chemical (Basic) 854 1.02
Chemical (Diversified) 71 1.15
Chemical (Specialty) 898 1.04
Coal & Related Energy 206 1.09
Computer Services 1040 1.09
Computers/Peripherals 336 1.33
Construction Supplies 784 1.02
Diversified 318 0.82
Drugs (Biotechnology) 1223 1.10
Drugs (Pharmaceutical) 1371 1.02
Education 244 1.00
Electrical Equipment 999 1.08
Electronics (Consumer & Office) 138 1.19
Electronics (General) 1425 1.31
Engineering/Construction 1267 0.84
Entertainment 734 1.11
Environmental & Waste Services 353 0.90
Farming/Agriculture 417 0.77
Financial Svcs. (Non-bank & Insurance) 1102 0.20
Food Processing 1377 0.77
Food Wholesalers 160 0.60
Furn/Home Furnishings 359 1.15
Green & Renewable Energy 239 0.76
Healthcare Products 852 1.01
Healthcare Support Services 445 0.85
Heathcare Information and Technology 455 1.03
Homebuilding 168 1.37
Hospitals/Healthcare Facilities 223 0.74
Hotel/Gaming 654 0.95
Household Products 575 1.00
Information Services 266 1.23
Insurance (General) 215 0.72
Insurance (Life) 142 1.00
Insurance (Prop/Cas.) 231 0.82
Investments & Asset Management 1706 0.72
Machinery 1421 1.13
Metals & Mining 1706 1.01
Office Equipment & Services 145 1.05
Oil/Gas (Integrated) 46 1.15
Oil/Gas (Production and Exploration) 642 1.21
Oil/Gas Distribution 165 0.75
Oilfield Svcs/Equip. 457 1.06
Packaging & Container 414 0.80
Paper/Forest Products 272 0.89
Power 541 0.54
Precious Metals 947 0.99
Publishing & Newspapers 337 0.94
R.E.I.T. 812 0.77
Real Estate (Development) 893 0.52
Real Estate (General/Diversified) 344 0.61
Real Estate (Operations & Services) 739 0.63
Recreation 324 1.02
Reinsurance 38 1.44
Restaurant/Dining 385 1.01
Retail (Automotive) 196 0.89
Retail (Building Supply) 98 1.11
Retail (Distributors) 1002 0.65
Retail (General) 204 0.87
Retail (Grocery and Food) 184 0.53
Retail (Online) 353 1.40
Retail (Special Lines) 479 1.09
Rubber& Tires 90 1.10
Semiconductor 581 1.55
Semiconductor Equip 324 1.93
Shipbuilding & Marine 348 0.99
Shoe 84 1.13
Software (Entertainment) 317 1.28
Software (Internet) 151 1.11
Software (System & Application) 1603 1.20
Steel 709 1.07
Telecom (Wireless) 101 0.72
Telecom. Equipment 465 1.17
Telecom. Services 296 0.58
Tobacco 55 0.73
Transportation 295 0.85
Transportation (Railroads) 51 0.67
Trucking 232 0.92
Utility (General) 54 0.52
Utility (Water) 104 0.51
Total Market 47606 0.89
Total Market (without financials) 42185 0.99
yu.edu
fied investor)

New_Home_Page/data.html
pc/datasets/indname.xls
New_Home_Page/datafile/variable.htm

Average Levered Beta Average correlation with the market

1.29 30.09%
1.22 34.80%
1.59 42.15%
0.95 24.75%
1.35 35.71%
1.53 37.19%
1.03 35.91%
0.74 41.40%
0.92 31.34%
0.88 28.61%
1.09 32.55%
0.92 25.20%
1.12 33.92%
1.11 34.25%
0.99 34.04%
1.14 28.35%
1.40 43.61%
1.11 29.83%
1.13 23.45%
1.12 31.48%
1.35 33.36%
1.16 32.14%
1.05 34.53%
1.10 25.18%
1.08 25.37%
1.06 27.71%
1.10 28.14%
1.29 32.94%
1.30 33.52%
1.12 30.58%
1.14 26.09%
1.04 27.98%
0.95 25.51%
0.89 27.68%
0.86 25.60%
0.86 28.31%
1.14 30.97%
1.01 24.65%
1.03 28.77%
0.96 28.31%
1.06 29.28%
1.48 47.31%
0.96 29.85%
1.19 29.94%
1.04 26.75%
1.27 34.29%
0.78 32.29%
1.08 41.49%
0.88 31.77%
0.86 29.05%
1.14 34.09%
1.10 22.99%
1.10 30.71%
1.28 43.38%
1.46 27.81%
1.16 31.06%
1.36 30.46%
0.96 27.92%
1.12 30.20%
0.85 32.58%
1.00 23.82%
0.93 28.79%
1.07 47.32%
1.00 26.05%
1.03 32.47%
0.90 30.27%
1.10 33.10%
1.48 42.53%
1.19 37.97%
1.10 33.24%
1.20 37.84%
0.87 27.41%
1.02 30.60%
0.69 29.20%
1.43 29.21%
1.21 35.02%
1.26 35.76%
1.57 34.59%
1.91 43.80%
1.12 29.46%
1.14 33.16%
1.28 29.43%
1.13 27.51%
1.21 29.11%
1.25 28.42%
1.00 29.75%
1.17 29.60%
0.86 27.24%
0.85 27.37%
1.01 27.72%
0.83 39.88%
1.13 35.05%
0.80 50.92%
0.73 27.56%
1.09 30.35%
1.12 30.19%
Global

Total Unlevered Beta Total Levered Beta

3.94 4.29
3.19 3.51
2.23 3.78
3.65 3.86
3.11 3.79
3.86 4.10
1.64 2.88
1.61 1.78
2.74 2.94
2.85 3.09
2.50 3.36
1.80 3.64
3.11 3.30
3.03 3.23
2.10 2.91
3.61 4.01
2.63 3.22
3.48 3.71
4.65 4.81
3.45 3.56
3.98 4.06
3.18 3.60
2.37 3.05
4.37 4.39
4.02 4.25
3.60 3.84
3.84 3.90
3.60 3.92
3.91 3.88
2.76 3.67
4.24 4.38
3.20 3.73
3.01 3.72
0.71 3.21
3.00 3.36
2.13 3.05
3.70 3.68
3.08 4.08
3.49 3.58
3.01 3.39
3.52 3.61
2.89 3.12
2.47 3.22
3.17 3.99
3.73 3.89
3.58 3.70
2.22 2.43
2.40 2.60
2.58 2.78
2.48 2.97
3.30 3.35
4.40 4.77
3.42 3.58
2.65 2.95
4.35 5.25
2.40 3.75
3.48 4.46
2.88 3.44
2.96 3.71
1.65 2.61
4.15 4.19
3.27 3.24
1.62 2.25
1.98 3.84
1.89 3.17
2.07 2.97
3.09 3.33
3.39 3.48
2.66 3.14
2.67 3.30
2.92 3.17
2.36 3.18
2.84 3.33
1.83 2.36
4.81 4.90
3.10 3.45
3.07 3.52
4.49 4.53
4.42 4.37
3.35 3.81
3.41 3.43
4.35 4.34
4.03 4.11
4.13 4.17
3.76 4.41
2.41 3.37
3.94 3.96
2.12 3.14
2.66 3.12
3.08 3.66
1.67 2.07
2.63 3.22
1.02 1.58
1.87 2.64
2.94 3.60
3.29 3.71