Yes — the Capital Asset Pricing Model (CAPM) in Valutico starts with an unlevered beta.
By default, Valutico calculates the median unlevered beta from your selected peer group. This approach strips out the effects of each peer company’s capital structure to provide a cleaner, asset-specific measure of risk.
Re-levering for Your Capital Structure
This unlevered beta is then re-levered using your subject company’s own:
Debt-to-equity ratio, and
Applicable tax rate
This ensures the final beta used in your Cost of Equity reflects your company’s specific financial risk profile.
Where to See the Details
To view or verify the beta inputs and calculations:
Go to the Peer Selection module in the Valuation
Click the three dots next to any peer
Select “Financials” to review each company's beta data and capital structure
