Introduction
Beta is a critical component in business valuations, and various ways exist to calculate it. Understanding that each valuation has unique requirements, we've introduced enhanced flexibility in beta calculations to meet your needs better.
You can now adjust key parameters to customise your beta calculation, including:
Index
Time Horizon (1 year, 3 years, or 5 year)
Interval/Frequency (Daily, Weekly, Monthly)
This added flexibility allows you to create more accurate and tailored beta calculations that reflect the specific market conditions and the risk profile of the valued company. With the ability to modify these key parameters, you can achieve more relevant beta inputs for your valuations.
Steps to Customise and View Beta Calculations
You must be inside a valuation flow to access the Peers Selection step.
Accessing Beta for a Peer Group
Navigate to the Peers Selection Screen
Go to the Beta tab on the Peers selection screen.
Here, you will see the Beta for the peer group displayed.
Customize Beta Parameters
On the Beta tab, you can modify the following settings:
Time Horizon: Select from 1 year, 3 years, or 5 years (current default).
Interval/Frequency: Choose from Daily, Weekly, or Monthly (current default).
Accessing Beta for a Specific Company
1. Navigate to the Peer Selection Screen
In the Peer table, find the desired company.
2. View Beta for a Specific Company
Click on the three-dot menu on the left of the company.
Select the Beta option from the menu to view the company’s beta calculation.
3. Dive Deeper into Financials and Customise the Index
After selecting the Beta, you can explore detailed financial information about the company and select one of our 13 indices to compare the company’s shares against.
