Total Betas by Sector (for computing private company costs of equity) - US

Data Used: Multiple data services

Date of Analysis: Data used is as of January 2019

Download as an excel file instead: http://www.stern.nyu.edu/~adamodar/pc/datasets/totalbeta.xls

For global datasets: http://www.stern.nyu.edu/~adamodar/New_Home_Page/data.html

can be obtained by clicking here

on which companies are included in each industry


Industry Name Number of firms Average Unlevered Beta Average Levered Beta Average correlation with the market Total Unlevered Beta Total Levered Beta
Advertising 48 0.87 1.22 17.11% 5.07 7.11
Aerospace/Defense 85 1.09 1.24 29.02% 3.76 4.27
Air Transport 18 0.63 1.02 33.49% 1.89 3.05
Apparel 50 0.76 0.93 18.27% 4.18 5.09
Auto & Truck 14 0.34 0.79 22.84% 1.50 3.47
Auto Parts 52 0.97 1.17 23.04% 4.20 5.07
Bank (Money Center) 10 0.43 0.71 45.25% 0.95 1.58
Banks (Regional) 633 0.40 0.57 28.82% 1.40 1.98
Beverage (Alcoholic) 31 1.05 1.30 17.03% 6.15 7.63
Beverage (Soft) 37 1.04 1.18 19.41% 5.38 6.06
Broadcasting 24 0.51 1.02 27.34% 1.86 3.73
Brokerage & Investment Banking 38 0.46 1.21 41.15% 1.11 2.93
Building Materials 42 0.91 1.10 33.82% 2.71 3.24
Business & Consumer Services 168 1.00 1.22 23.86% 4.19 5.10
Cable TV 14 0.76 1.13 49.70% 1.53 2.28
Chemical (Basic) 39 1.12 1.55 24.29% 4.62 6.38
Chemical (Diversified) 6 1.49 1.82 49.23% 3.03 3.69
Chemical (Specialty) 89 0.99 1.17 29.46% 3.36 3.97
Coal & Related Energy 23 0.97 1.17 18.20% 5.31 6.42
Computer Services 119 1.05 1.27 23.60% 4.43 5.38
Computers/Peripherals 57 1.50 1.68 25.99% 5.77 6.46
Construction Supplies 48 1.15 1.45 33.41% 3.44 4.35
Diversified 23 1.14 1.36 36.71% 3.12 3.70
Drugs (Biotechnology) 481 1.43 1.51 22.28% 6.42 6.78
Drugs (Pharmaceutical) 237 1.38 1.47 19.33% 7.13 7.58
Education 35 1.11 1.28 21.76% 5.09 5.87
Electrical Equipment 116 1.18 1.32 21.34% 5.54 6.20
Electronics (Consumer & Office) 19 1.22 1.19 16.04% 7.63 7.43
Electronics (General) 160 0.96 1.02 23.68% 4.06 4.29
Engineering/Construction 52 0.81 1.01 32.48% 2.49 3.10
Entertainment 120 1.21 1.33 15.55% 7.81 8.55
Environmental & Waste Services 91 0.96 1.19 20.11% 4.77 5.93
Farming/Agriculture 33 0.50 0.72 25.38% 1.95 2.83
Financial Svcs. (Non-bank & Insurance) 259 0.08 0.70 25.43% 0.30 2.76
Food Processing 83 0.61 0.81 19.95% 3.06 4.06
Food Wholesalers 18 1.23 1.62 21.78% 5.67 7.46
Furn/Home Furnishings 30 0.67 0.88 23.71% 2.82 3.73
Green & Renewable Energy 21 0.80 1.62 14.27% 5.60 11.36
Healthcare Products 248 1.04 1.12 23.32% 4.46 4.81
Healthcare Support Services 111 1.03 1.15 25.09% 4.09 4.60
Heathcare Information and Technology 119 1.18 1.29 25.29% 4.65 5.10
Homebuilding 31 0.72 0.98 25.94% 2.79 3.78
Hospitals/Healthcare Facilities 34 0.55 1.12 24.86% 2.22 4.49
Hotel/Gaming 70 0.71 1.01 29.40% 2.42 3.43
Household Products 141 1.00 1.13 15.68% 6.36 7.21
Information Services 71 1.05 1.12 40.66% 2.58 2.76
Insurance (General) 20 0.67 0.87 44.25% 1.52 1.97
Insurance (Life) 23 0.70 1.11 48.45% 1.45 2.29
Insurance (Prop/Cas.) 50 0.65 0.74 33.34% 1.95 2.22
Investments & Asset Management 172 0.87 1.10 27.23% 3.18 4.05
Machinery 127 1.01 1.17 34.88% 2.90 3.36
Metals & Mining 94 1.11 1.32 14.96% 7.41 8.83
Office Equipment & Services 24 1.33 1.81 26.64% 5.01 6.80
Oil/Gas (Integrated) 5 1.06 1.16 37.63% 2.81 3.08
Oil/Gas (Production and Exploration) 301 1.07 1.45 19.99% 5.37 7.27
Oil/Gas Distribution 20 0.62 1.07 26.85% 2.32 3.99
Oilfield Svcs/Equip. 134 1.07 1.33 23.73% 4.50 5.60
Packaging & Container 27 0.74 1.07 44.29% 1.66 2.43
Paper/Forest Products 20 1.17 1.40 24.06% 4.87 5.80
Power 51 0.35 0.54 22.55% 1.53 2.41
Precious Metals 91 1.15 1.19 9.11% 12.61 13.08
Publishing & Newspapers 33 0.90 1.26 27.45% 3.27 4.57
R.E.I.T. 238 0.41 0.68 34.39% 1.19 1.97
Real Estate (Development) 18 0.87 1.19 17.22% 5.06 6.94
Real Estate (General/Diversified) 11 1.33 1.36 24.82% 5.35 5.50
Real Estate (Operations & Services) 59 0.95 1.35 19.36% 4.92 6.95
Recreation 72 0.81 0.98 18.27% 4.43 5.36
Reinsurance 2 0.88 0.97 65.13% 1.35 1.49
Restaurant/Dining 78 0.65 0.80 21.78% 2.99 3.66
Retail (Automotive) 24 0.76 1.15 24.39% 3.12 4.73
Retail (Building Supply) 17 0.97 1.12 27.93% 3.46 4.00
Retail (Distributors) 88 0.99 1.44 27.80% 3.55 5.18
Retail (General) 19 0.75 0.91 28.98% 2.59 3.15
Retail (Grocery and Food) 12 0.28 0.45 12.89% 2.18 3.50
Retail (Online) 79 1.34 1.42 20.01% 6.72 7.08
Retail (Special Lines) 91 0.80 1.07 21.56% 3.71 4.97
Rubber& Tires 4 0.24 0.42 28.79% 0.83 1.45
Semiconductor 72 1.26 1.34 33.50% 3.77 3.99
Semiconductor Equip 41 1.39 1.39 32.87% 4.23 4.22
Shipbuilding & Marine 9 0.78 1.08 26.27% 2.96 4.10
Shoe 10 0.74 0.75 22.79% 3.25 3.31
Software (Entertainment) 92 1.27 1.26 16.59% 7.65 7.58
Software (Internet) 44 1.31 1.46 19.14% 6.82 7.62
Software (System & Application) 355 1.16 1.23 23.25% 5.00 5.28
Steel 37 1.29 1.62 30.58% 4.23 5.29
Telecom (Wireless) 21 0.71 1.26 19.99% 3.53 6.32
Telecom. Equipment 98 1.02 1.09 24.08% 4.25 4.53
Telecom. Services 67 0.74 1.22 18.56% 3.99 6.56
Tobacco 17 1.13 1.29 19.36% 5.81 6.67
Transportation 19 0.90 1.14 39.13% 2.30 2.92
Transportation (Railroads) 10 2.08 2.47 38.66% 5.38 6.39
Trucking 28 0.71 1.22 33.35% 2.13 3.66
Utility (General) 18 0.17 0.27 20.00% 0.87 1.33
Utility (Water) 19 0.32 0.42 18.26% 1.77 2.33
Total Market  7209 0.80 1.12 24.87% 3.23 4.52
Total Market (without financials) 6004 1.00 1.21 24.00% 4.16 5.03

Last Updated in January 2019
By Aswath Damodaran