Hamada formula

Levered Beta is the beta that reflects a capital structure that does include debt. The Unlevered Beta is the Beta of a company without any debt. Unlevering a beta removes the financial effects from leverage.

${\text{Unlevered beta}}$ = ${\frac {B^{L}}{1+(1-T_{c})*{\frac {D}{E}}}}$

Where:

• ${B^{L}}$ is the levered, published beta
• ${D}$ is the companies debt
• ${E}$ is the companies equity
• ${T_{c}}$ is the corporate tax rate.