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

Data Used: S&P Capital IQ, Bloomberg and the Fed

Date of Analysis: Data used is as of January 2014

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

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 Total Unlevered Beta Total Levered Beta
Advertising 65 0.73 1.03 18.99% 3.86 5.42
Aerospace/Defense 95 0.92 1.01 32.08% 2.88 3.14
Air Transport 25 0.52 0.94 26.41% 1.96 3.55
Apparel 70 0.99 1.15 26.75% 3.70 4.28
Auto & Truck 26 0.72 1.28 31.03% 2.33 4.11
Auto Parts 75 1.23 1.46 34.65% 3.55 4.22
Bank 7 0.49 0.72 44.26% 1.10 1.62
Banks (Regional) 721 0.43 0.58 26.19% 1.62 2.23
Beverage  47 1.24 1.42 22.15% 5.58 6.43
Beverage (Alcoholic) 19 0.93 1.14 26.77% 3.46 4.26
Biotechnology 349 1.07 1.12 19.15% 5.59 5.82
Broadcasting 30 1.10 1.53 33.46% 3.30 4.58
Brokerage & Investment Banking 49 0.33 1.11 39.27% 0.84 2.82
Building Materials 37 1.07 1.27 42.68% 2.51 2.98
Business & Consumer Services 179 0.75 0.90 31.01% 2.41 2.89
Cable TV 16 0.71 0.97 31.90% 2.21 3.06
Chemical (Basic) 47 0.85 1.01 25.35% 3.37 3.99
Chemical (Diversified) 10 1.22 1.42 56.17% 2.17 2.52
Chemical (Specialty) 100 0.95 1.01 35.95% 2.63 2.82
Coal & Related Energy 45 0.73 1.28 24.13% 3.04 5.29
Computer Services 129 0.82 0.92 25.02% 3.29 3.68
Computer Software 273 1.04 1.07 27.28% 3.83 3.91
Computers/Peripherals 66 1.13 1.15 25.76% 4.38 4.46
Construction 18 0.77 0.96 29.36% 2.61 3.27
Diversified 20 0.43 0.77 43.69% 0.99 1.76
Educational Services 40 1.04 1.24 23.09% 4.53 5.35
Electrical Equipment 135 1.07 1.14 24.61% 4.35 4.64
Electronics 191 1.00 1.02 23.68% 4.22 4.33
Electronics (Consumer & Office) 26 1.08 1.37 27.77% 3.87 4.92
Engineering 56 1.13 1.20 38.99% 2.90 3.08
Entertainment 85 0.99 1.19 22.91% 4.33 5.19
Environmental & Waste Services 108 0.81 1.13 20.36% 4.00 5.57
Farming/Agriculture 29 0.63 0.79 25.37% 2.47 3.13
Financial Svcs. 76 0.58 0.99 31.08% 1.86 3.17
Financial Svcs. (Non-bank & Insurance) 17 0.29 1.05 46.08% 0.62 2.28
Food Processing 97 0.71 0.85 27.43% 2.58 3.10
Food Wholesalers 18 1.04 1.18 28.54% 3.65 4.12
Furn/Home Furnishings 36 1.03 1.24 32.15% 3.22 3.86
Healthcare Equipment 193 0.77 0.85 23.70% 3.27 3.60
Healthcare Facilities 47 0.56 1.13 32.64% 1.71 3.46
Healthcare Products 58 0.89 1.00 26.99% 3.29 3.72
Healthcare Services 126 0.72 0.83 23.41% 3.07 3.56
Heathcare Information and Technology 125 0.92 0.99 21.67% 4.24 4.58
Heavy Construction 46 1.22 1.67 45.04% 2.70 3.71
Homebuilding 32 1.23 1.71 44.41% 2.78 3.86
Hotel/Gaming 89 0.90 1.27 27.93% 3.23 4.56
Household Products 139 0.89 1.00 20.59% 4.30 4.88
Information Services 71 0.81 0.84 37.04% 2.18 2.28
Insurance (General) 26 0.71 0.92 47.22% 1.49 1.95
Insurance (Life) 27 0.87 1.21 52.86% 1.65 2.29
Insurance (Prop/Cas.) 53 0.63 0.76 37.14% 1.70 2.05
Internet software and services 330 1.05 1.05 18.41% 5.69 5.68
Investment Co. 65 0.47 0.82 29.76% 1.57 2.74
Machinery 141 0.96 1.04 38.26% 2.51 2.73
Metals & Mining 134 0.90 1.26 20.63% 4.38 6.11
Office Equipment & Services 30 0.82 1.14 40.42% 2.02 2.83
Oil/Gas (Integrated) 8 0.97 1.00 59.83% 1.62 1.68
Oil/Gas (Production and Exploration) 411 0.51 1.24 26.83% 1.91 4.62
Oil/Gas Distribution 80 0.55 0.82 35.48% 1.55 2.30
Oilfield Svcs/Equip. 163 1.17 1.30 33.87% 3.46 3.85
Packaging & Container 24 0.73 0.99 48.10% 1.53 2.05
Paper/Forest Products 21 0.93 1.34 35.94% 2.60 3.72
Pharma & Drugs 138 1.03 1.10 23.42% 4.38 4.71
Power 106 0.40 0.68 36.29% 1.11 1.87
Precious Metals 166 1.09 1.33 13.57% 8.04 9.83
Publshing & Newspapers 52 0.87 1.08 27.11% 3.23 3.99
R.E.I.T. 46 0.12 0.78 37.49% 0.33 2.09
Railroad 10 0.92 1.08 51.51% 1.79 2.09
Real Estate (Development) 22 0.85 0.99 26.30% 3.23 3.76
Real Estate (General/Diversified) 11 0.62 0.72 31.38% 1.99 2.29
Real Estate (Operations & Services) 47 0.94 1.40 19.70% 4.76 7.11
Recreation 70 1.11 1.30 25.86% 4.29 5.05
Reinsurance 3 0.47 0.56 41.17% 1.15 1.37
Restaurant 84 0.71 0.86 30.20% 2.36 2.84
Retail (Automotive) 30 0.80 1.15 35.38% 2.27 3.25
Retail (Building Supply) 7 0.94 1.07 33.51% 2.80 3.19
Retail (Distributors) 87 0.74 1.00 29.59% 2.52 3.38
Retail (General) 21 0.80 0.98 35.34% 2.26 2.77
Retail (Grocery and Food) 21 0.58 0.81 29.17% 1.97 2.79
Retail (Internet) 47 1.02 1.03 23.91% 4.25 4.31
Retail (Special Lines) 137 0.78 0.99 31.02% 2.51 3.18
Rubber& Tires 4 0.80 1.27 23.22% 3.43 5.46
Semiconductor 104 1.14 1.19 35.91% 3.17 3.32
Semiconductor Equip 51 1.21 1.25 34.15% 3.55 3.67
Shipbuilding & Marine 14 0.94 1.50 35.48% 2.66 4.22
Shoe 14 0.81 0.83 32.85% 2.46 2.53
Steel 37 0.91 1.19 39.97% 2.28 2.98
Telecom (Wireless) 28 0.37 0.68 22.22% 1.67 3.06
Telecom. Equipment 131 1.11 1.14 28.01% 3.97 4.09
Telecom. Services 82 0.63 0.94 22.54% 2.79 4.17
Thrift 223 0.01 0.53 21.44% 0.06 2.48
Tobacco 12 0.83 0.94 43.85% 1.89 2.14
Transportation 22 0.92 1.01 36.26% 2.53 2.77
Trucking 28 0.77 1.17 37.63% 2.04 3.10
Utility (General) 20 0.38 0.56 46.43% 0.82 1.20
Utility (Water) 20 0.50 0.75 30.89% 1.63 2.42
Total Market 7766 0.64 1.01 27.99% 2.28 3.60

 



Last Updated in January 2014
By Aswath Damodaran