Welcome to CalculateBeta
CalculateBeta™ is a powerful tool for quickly and easily calculating stock betas, costs of equity, market multiples and other valuation statistics as of current or historical dates for peer groups of public company equities. Use the public companies, as-of date, look-back period, type of period, market benchmark and other parameters you consider relevant. Among other things you can also easily:
- retrieve risk-free rates, GDP growth rates, and inflation data as of your selected date
- calculate historical average market equity risk premiums over periods you specify
- retrieve selected public company fundamental financial information and calculate market multiples as of the same date as your beta and cost of equity calculations
- screen by industry to identify potential peer group companies, with links to the SEC's EDGAR database for further research
- download most data directly into Excel and other spreadsheets
Risk-Free Rates, Growth and Inflation Data, and Market Equity Risk Premiums
There's no charge for the risk-free rate and market equity premium tools. You just register with CalculateBeta and create a free account. Most risk-free rate, GDP growth and inflation data is available from late 1953 to the present. Both arithmetic and geometric equity risk premiums can be computed over periods you choose, beginning as early as the spring of 1954.
Prices, Returns, Betas, Statistics, and Peer Group Costs of Equity - Easily Consider Many Cases
Subscribers to CalculateBeta's premium features can enter an as-of date, ticker symbols, a selected market index, and the number and type of prior periods (monthly, weekly or daily), and let CalculateBeta do the work of gathering data and calculating various valuation parameters.1 CalculateBeta will retrieve the underlying price and index data and calculate total returns (yielding better beta calculations than price returns), betas, regression statistics (and scatterplot graphs), summary statistics and more, including alternative betas considered by some analysts, such as sum betas and total betas. CalculateBeta makes it easy to consider many cases - for example, to check out rolling betas and costs of equity over time, or to look at different beta and cost of equity cases for different lines of business.
CalculateBeta also uses your selected public companies' tax rates and debt-to-equity ratios to unlever their betas and calculate a relevered peer group beta.2 It looks up risk-free rates and calculates equity risk premiums through your specified as-of date, and uses all this information to calculate a peer group cost of equity based on the widely-used capital asset pricing model (CAPM).
CalculateBeta allows you to save analysis cases on the site and revisit them later, from anywhere, or to download them to a spreadsheet with a single click. The spreadsheets produced by CalculateBeta are mostly "live", with formulas, allowing you to easily substitute different information than the defaults, if you like - for example, a different equity risk premium or risk-free rate. Underlying prices and returns are included so that calculations are fully transparent.
Market Multiples with Those Betas?
For most covered companies in your analyses CalculateBeta also retrieves selected fundamental financial information, as of your specified date, from the preceding quarter's balance sheet and trailing twelve months income and cash flow statements.2 In addition to unlevering your betas CalculateBeta uses this information to calculate certain market multiples as of your chosen date, including the market value of equity to net income and the market value of invested capital to earnings before interest, taxes, depreciation and amortization (EBITDA).
Please take a look at the various Frequent Questions articles linked on this page for more detailed information, or use the Pre-Subscription area of our Support ticket system if you have pre-subscription questions not addressed elsewhere. Thanks for visiting!
1. Coverage currently includes most companies traded on the NYSE (including the former AMEX companies), NASDAQ and OTCBB markets. Betas are calculable as of dates subsequent to December 31, 1999.
2. CalculateBeta does not provide fundamental financial data or attempt to unlever betas for certain companies, primarily in the financial and real estate sectors. For other firms, CalculateBeta provides selected fundamental data for "as of" dates within approximately five years preceding the present. CalculateBeta does not currently provide fundamental data for older dates.