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-23
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://pages.stern.nyu.edu/~adamodar/New_Home_Page/data.html
Companies in each industry: https://pages.stern.nyu.edu/~adamodar/pc/datasets/indname.xls
Variable definitions: https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/varia

Industry Name Number of firms Average Unlevered Beta

Advertising 58 1.35
Aerospace/Defense 77 1.23
Air Transport 21 0.69
Apparel 39 1.02
Auto & Truck 31 1.23
Auto Parts 37 1.20
Bank (Money Center) 7 0.74
Banks (Regional) 557 0.41
Beverage (Alcoholic) 23 0.88
Beverage (Soft) 31 1.20
Broadcasting 26 0.70
Brokerage & Investment Banking 30 0.69
Building Materials 45 1.10
Business & Consumer Services 164 1.02
Cable TV 10 0.71
Chemical (Basic) 38 0.96
Chemical (Diversified) 4 1.09
Chemical (Specialty) 76 1.12
Coal & Related Energy 19 1.43
Computer Services 80 0.99
Computers/Peripherals 42 1.23
Construction Supplies 49 1.08
Diversified 23 0.94
Drugs (Biotechnology) 598 1.20
Drugs (Pharmaceutical) 281 1.18
Education 33 0.99
Electrical Equipment 110 1.43
Electronics (Consumer & Office) 16 1.61
Electronics (General) 138 1.12
Engineering/Construction 43 1.02
Entertainment 110 1.25
Environmental & Waste Services 62 0.86
Farming/Agriculture 39 0.93
Financial Svcs. (Non-bank & Insurance) 223 0.11
Food Processing 92 0.77
Food Wholesalers 14 0.85
Furn/Home Furnishings 32 0.95
Green & Renewable Energy 19 0.88
Healthcare Products 254 1.10
Healthcare Support Services 131 1.07
Heathcare Information and Technology 138 1.37
Homebuilding 32 1.33
Hospitals/Healthcare Facilities 34 0.72
Hotel/Gaming 69 1.06
Household Products 127 1.06
Information Services 73 1.33
Insurance (General) 21 1.03
Insurance (Life) 27 0.67
Insurance (Prop/Cas.) 51 0.73
Investments & Asset Management 600 0.54
Machinery 116 1.09
Metals & Mining 68 1.22
Office Equipment & Services 16 0.84
Oil/Gas (Integrated) 4 0.95
Oil/Gas (Production and Exploration) 174 1.14
Oil/Gas Distribution 23 0.66
Oilfield Svcs/Equip. 101 1.19
Packaging & Container 25 0.67
Paper/Forest Products 7 1.13
Power 48 0.46
Precious Metals 74 1.19
Publishing & Newspapers 20 0.91
R.E.I.T. 223 0.69
Real Estate (Development) 18 0.88
Real Estate (General/Diversified) 12 0.66
Real Estate (Operations & Services) 60 0.81
Recreation 57 1.08
Reinsurance 1 0.83
Restaurant/Dining 70 1.17
Retail (Automotive) 30 1.08
Retail (Building Supply) 15 1.57
Retail (Distributors) 69 1.01
Retail (General) 15 1.22
Retail (Grocery and Food) 13 0.47
Retail (Online) 63 1.36
Retail (Special Lines) 78 1.19
Rubber& Tires 3 0.27
Semiconductor 68 1.53
Semiconductor Equip 30 1.69
Shipbuilding & Marine 8 0.78
Shoe 13 1.29
Software (Entertainment) 91 1.36
Software (Internet) 33 1.42
Software (System & Application) 390 1.41
Steel 28 1.21
Telecom (Wireless) 16 0.71
Telecom. Equipment 79 1.18
Telecom. Services 49 0.47
Tobacco 15 1.74
Transportation 18 0.92
Transportation (Railroads) 4 0.93
Trucking 35 1.23
Utility (General) 15 0.41
Utility (Water) 16 0.87
Total Market 7165 0.88
Total Market (without financials) 5649 1.12
yu.edu
fied investor) US companies

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

Average correlation with the

Average Levered Beta market Total Unlevered Beta
1.63 24.78% 5.43
1.41 35.48% 3.46
1.42 39.97% 1.74
1.32 35.74% 2.84
1.54 28.60% 4.29
1.47 35.95% 3.34
1.08 51.58% 1.43
0.50 26.37% 1.57
1.01 24.63% 3.58
1.30 24.19% 4.97
1.32 29.55% 2.38
1.20 43.27% 1.60
1.28 43.06% 2.55
1.17 30.68% 3.32
1.26 48.66% 1.45
1.25 28.99% 3.31
1.41 35.34% 3.09
1.28 36.81% 3.03
1.45 23.41% 6.10
1.17 27.68% 3.59
1.29 29.41% 4.17
1.26 41.63% 2.58
1.04 27.54% 3.41
1.24 22.87% 5.24
1.27 20.21% 5.84
1.10 27.16% 3.66
1.59 28.92% 4.95
1.54 25.89% 6.23
1.20 30.27% 3.69
1.20 39.10% 2.60
1.45 20.82% 5.99
1.02 21.64% 3.97
1.14 26.73% 3.48
0.89 29.51% 0.36
0.92 21.24% 3.62
1.12 36.63% 2.31
1.27 34.07% 2.79
1.60 22.50% 3.90
1.16 28.74% 3.82
1.16 26.00% 4.12
1.47 31.32% 4.38
1.50 44.61% 2.99
1.17 29.41% 2.46
1.46 37.47% 2.83
1.16 20.08% 5.27
1.40 38.24% 3.49
1.23 40.78% 2.52
0.94 40.50% 1.65
0.80 35.44% 2.06
0.62 17.83% 3.02
1.22 37.91% 2.89
1.29 19.15% 6.37
1.18 37.01% 2.28
0.98 26.79% 3.53
1.26 18.16% 6.26
0.99 30.62% 2.14
1.38 20.61% 5.76
0.95 49.44% 1.36
1.38 26.40% 4.26
0.73 39.32% 1.18
1.23 14.49% 8.19
1.11 32.50% 2.81
1.06 48.24% 1.42
1.52 17.50% 5.05
0.79 26.07% 2.55
1.35 26.78% 3.01
1.42 33.42% 3.22
0.83 38.60% 2.15
1.41 34.72% 3.36
1.52 38.54% 2.81
1.79 48.34% 3.24
1.28 35.85% 2.81
1.36 47.98% 2.54
0.67 27.61% 1.71
1.49 29.67% 4.57
1.48 36.57% 3.25
0.84 24.04% 1.11
1.61 47.26% 3.25
1.76 49.37% 3.42
0.94 29.60% 2.64
1.33 37.06% 3.48
1.36 24.11% 5.63
1.55 33.27% 4.26
1.47 30.96% 4.56
1.34 33.24% 3.65
1.03 22.54% 3.16
1.23 29.01% 4.06
0.88 20.36% 2.33
2.00 23.61% 7.39
1.06 39.07% 2.37
1.11 60.16% 1.55
1.55 40.73% 3.03
0.64 44.68% 0.92
1.15 33.86% 2.58
1.16 28.98% 3.05
1.29 30.14% 3.72
Total Levered Beta
6.59
3.99
3.54
3.71
5.39
4.10
2.09
1.91
4.11
5.39
4.47
2.78
2.97
3.82
2.58
4.30
4.00
3.47
6.20
4.23
4.39
3.04
3.77
5.43
6.28
4.05
5.50
5.94
3.97
3.06
6.96
4.69
4.27
3.00
4.32
3.07
3.73
7.11
4.04
4.46
4.70
3.37
3.99
3.90
5.75
3.67
3.01
2.32
2.27
3.50
3.23
6.74
3.18
3.65
6.92
3.24
6.67
1.93
5.24
1.84
8.51
3.43
2.20
8.67
3.03
5.02
4.24
2.15
4.06
3.94
3.70
3.56
2.84
2.42
5.01
4.03
3.49
3.40
3.56
3.19
3.58
5.66
4.66
4.75
4.04
4.57
4.25
4.33
8.47
2.71
1.84
3.79
1.42
3.40
3.99
4.29