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-24
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 18 1.21
Aerospace/Defense 16 1.47
Air Transport 5 0.94
Apparel 344 0.67
Auto & Truck 12 1.23
Auto Parts 109 1.06
Bank (Money Center) 34 1.19
Banks (Regional) 5 1.24
Beverage (Alcoholic) 19 0.60
Beverage (Soft) 5 0.45
Broadcasting 19 0.91
Brokerage & Investment Banking 170 0.50
Building Materials 51 0.85
Business & Consumer Services 65 0.57
Cable TV 8 1.03
Chemical (Basic) 138 0.86
Chemical (Diversified) 9 0.87
Chemical (Specialty) 178 0.74
Coal & Related Energy 4 0.71
Computer Services 156 0.76
Computers/Peripherals 8 0.32
Construction Supplies 97 0.85
Diversified 15 1.04
Drugs (Biotechnology) 8 0.55
Drugs (Pharmaceutical) 167 0.96
Education 29 0.58
Electrical Equipment 111 0.94
Electronics (Consumer & Office) 7 1.09
Electronics (General) 35 0.53
Engineering/Construction 155 0.93
Entertainment 65 0.54
Environmental & Waste Services 14 0.97
Farming/Agriculture 59 0.58
Financial Svcs. (Non-bank & Insurance) 274 0.34
Food Processing 192 0.84
Food Wholesalers 34 0.69
Furn/Home Furnishings 43 0.46
Green & Renewable Energy 16 0.75
Healthcare Products 11 0.80
Healthcare Support Services 37 0.39
Heathcare Information and Technology 14 1.24
Homebuilding 1 -0.18
Hospitals/Healthcare Facilities 32 0.92
Hotel/Gaming 60 0.70
Household Products 37 0.69
Information Services 20 1.04
Insurance (General) 2 1.57
Insurance (Life) 7 1.15
Insurance (Prop/Cas.) 2 1.56
Investments & Asset Management 102 0.56
Machinery 161 0.81
Metals & Mining 42 0.88
Office Equipment & Services 17 0.65
Oil/Gas (Integrated) 1 0.81
Oil/Gas (Production and Exploration) 8 0.62
Oil/Gas Distribution 11 0.80
Oilfield Svcs/Equip. 23 0.77
Packaging & Container 86 0.63
Paper/Forest Products 49 0.46
Power 32 0.80
Precious Metals 1 2.18
Publishing & Newspapers 22 0.68
R.E.I.T. 4 0.21
Real Estate (Development) 150 0.68
Real Estate (General/Diversified) 17 0.98
Real Estate (Operations & Services) 32 0.52
Recreation 12 0.54
Reinsurance 1 3.39
Restaurant/Dining 16 0.84
Retail (Automotive) 4 0.74
Retail (Building Supply) 4 0.56
Retail (Distributors) 253 0.47
Retail (General) 11 0.76
Retail (Grocery and Food) 8 0.09
Retail (REITs) 1 NA
Retail (Special Lines) 43 0.74
Rubber& Tires 16 0.82
Semiconductor 8 1.57
Semiconductor Equip 1 1.53
Shipbuilding & Marine 23 1.09
Shoe 12 0.02
Software (Entertainment) 5 0.79
Software (Internet) 6 -0.01
Software (System & Application) 73 1.20
Steel 168 0.95
Telecom (Wireless) 3 0.96
Telecom. Equipment 21 1.06
Telecom. Services 14 0.68
Tobacco 6 0.45
Transportation 48 0.84
Transportation (Railroads) 1 0.99
Trucking 12 0.64
Utility (General) 0 NA
Utility (Water) 1 1.89
Total Market 4446 0.71
Total Market (without financials) 3850 0.76
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

1.20 11.97%
1.30 18.56%
1.20 17.62%
0.73 13.31%
1.35 22.59%
1.12 16.76%
1.31 21.29%
1.27 16.68%
0.60 15.19%
0.46 16.47%
0.85 14.02%
0.55 12.01%
0.88 14.84%
0.56 10.93%
0.99 11.20%
0.90 14.40%
0.88 16.36%
0.76 13.10%
0.62 10.66%
0.76 14.15%
0.31 14.09%
0.95 18.83%
1.09 18.67%
0.73 11.40%
0.96 13.82%
0.60 10.76%
0.95 15.29%
1.11 15.84%
0.51 9.70%
1.08 15.25%
0.64 12.20%
0.93 11.74%
0.61 12.57%
0.70 13.20%
0.86 12.88%
0.73 10.77%
0.46 10.70%
0.88 10.95%
0.80 10.25%
0.39 7.94%
1.22 14.79%
-0.18 NA
0.93 16.14%
0.73 14.42%
0.69 12.83%
1.07 15.31%
2.05 21.34%
1.10 28.09%
1.39 20.64%
0.60 11.94%
0.81 14.05%
1.06 17.74%
0.66 12.85%
0.99 16.43%
0.91 12.37%
0.74 11.69%
0.88 13.21%
0.75 12.37%
0.51 12.40%
1.02 14.29%
2.23 18.97%
0.72 12.13%
0.29 15.76%
0.75 13.70%
1.00 21.88%
0.56 11.37%
0.55 9.95%
1.92 28.64%
0.86 17.10%
0.80 14.89%
0.60 9.56%
0.51 11.37%
0.90 12.32%
0.09 12.51%
NA NA
0.79 14.04%
0.88 13.34%
1.61 15.20%
1.58 NA
1.21 12.23%
0.02 12.27%
0.78 23.63%
-0.01 8.77%
1.16 15.35%
1.08 15.31%
1.44 23.54%
1.12 15.23%
0.94 19.27%
0.44 11.84%
0.95 15.27%
0.94 17.89%
0.72 13.21%
0.00 0.00%
1.82 19.75%
0.80 13.82%
0.82 13.89%
 Notes
When investors are diversified, a
India market beta captures their exposure to
the risk that cannot be diversified away.
YouTube Video explaining
When estimation
investors choices and process.
are completely
undiversified, a total beta will capture
the total risk in a company.

Total Unlevered Beta Total Levered Beta

10.15 10.01
7.93 6.98
5.32 6.82
5.05 5.51
5.43 5.96
6.33 6.70
5.61 6.16
7.42 7.62
3.95 3.95
2.74 2.79
6.49 6.05
4.16 4.55
5.76 5.90
5.18 5.09
9.17 8.85
5.95 6.23
5.32 5.37
5.67 5.80
6.70 5.81
5.35 5.34
2.24 2.20
4.50 5.03
5.56 5.84
4.81 6.41
6.95 6.96
5.42 5.54
6.13 6.20
6.90 6.99
5.43 5.25
6.11 7.06
4.45 5.27
8.24 7.93
4.60 4.83
2.60 5.28
6.52 6.68
6.43 6.74
4.31 4.31
6.89 8.06
7.84 7.80
4.95 4.91
8.36 8.23
NA NA
5.72 5.78
4.88 5.05
5.39 5.37
6.82 7.00
7.34 9.61
4.08 3.91
7.54 6.75
4.71 5.00
5.73 5.77
4.98 5.99
5.03 5.13
4.91 6.05
5.03 7.39
6.85 6.32
5.80 6.70
5.11 6.07
3.71 4.08
5.61 7.13
11.47 11.75
5.61 5.93
1.36 1.81
4.97 5.49
4.50 4.58
4.59 4.92
5.40 5.48
11.82 6.69
4.91 5.05
4.98 5.39
5.85 6.31
4.12 4.49
6.17 7.27
0.74 0.73
NA NA
5.29 5.63
6.17 6.62
10.34 10.60
NA NA
8.94 9.92
0.17 0.17
3.33 3.31
-0.07 -0.07
7.85 7.59
6.21 7.09
4.08 6.13
6.95 7.35
3.51 4.89
3.77 3.74
5.53 6.24
5.55 5.26
4.81 5.44
NA NA
9.55 9.23
5.11 5.80
5.47 5.90
 Notes
are diversified, a
ptures their exposure to
nnot be diversified away.
are completely
total beta will capture
a company.