Calculating Unlevered Beta and Adjusting for a Private Company
As a financial analyst, you are tasked with estimating the <strong>appropriate beta</strong> for a private company that is being valued for an acquisition. Since the company is not publicly traded, you will derive its <strong>Levered Beta</strong> by first calculating the <strong>Unlevered Beta</strong> from a set of comparable public companies (peers) and then adjusting it to the private firm's target capital structure.