000000Global Companies 000000Betas by Sector 000000January 2016

Date updated: 5-Jan-19 YouTube Video explaining estimation choices and process. Notes
Created by: Aswath Damodaran, adamodar@stern.nyu.edu if you are looking for a pure-play beta, i.e., a beta for a business,
What is this data? Beta, Unlevered beta and other risk measures US companies unlevered beta corrected for cash is your best bet. Since even sec
betas can move over time, I have also reported the average of the
Home Page: http://www.damodaran.com sector beta across time in the last column. This number, for obvio
Data website: http://www.stern.nyu.edu/~adamodar/New_Home_Page/data.html reasons, is less likely to be volatile over time.
Companies in each industry: http://www.stern.nyu.edu/~adamodar/pc/datasets/indname.xls
Variable definitions: http://www.stern.nyu.edu/~adamodar/New_Home_Page/datafile/variable.htm
Do you want to use marginal or effective tax rates in unlevering betas? Marginal
If marginal tax rate, enter the marginal tax rate to use 25.00%

Effective
Industry Name Number of firms Beta D/E Ratio Tax rate Unlevered beta Cash/Firm value Unlevered beta corrected for cash HiLo Risk
Advertising 48 1.22 71.06% 5.69% 0.79 8.64% 0.87 0.6668
Aerospace/Defense 85 1.24 25.39% 11.40% 1.04 4.65% 1.09 0.5108
Air Transport 18 1.02 89.82% 6.48% 0.61 3.77% 0.63 0.4134
Apparel 50 0.93 35.00% 14.19% 0.74 3.43% 0.76 0.5380
Auto & Truck 14 0.79 195.44% 10.15% 0.32 5.94% 0.34 0.4878
Auto Parts 52 1.17 39.95% 11.57% 0.90 7.24% 0.97 0.5604
Bank (Money Center) 10 0.71 203.85% 26.01% 0.28 34.12% 0.43 0.1730
Banks (Regional) 633 0.57 76.51% 26.99% 0.36 10.54% 0.40 0.2015
Beverage (Alcoholic) 31 1.30 34.18% 2.55% 1.03 1.35% 1.05 0.5694
Beverage (Soft) 37 1.18 23.53% 3.87% 1.00 4.21% 1.04 0.6396
Broadcasting 24 1.02 144.55% 2.54% 0.49 3.76% 0.51 0.4222
Brokerage & Investment Banking 38 1.21 296.73% 22.47% 0.37 18.29% 0.46 0.3704
Building Materials 42 1.10 32.99% 16.11% 0.88 3.99% 0.91 0.3707
Business & Consumer Services 168 1.22 35.68% 7.60% 0.96 3.95% 1.00 0.5495
Cable TV 14 1.13 70.70% 3.61% 0.74 2.85% 0.76 0.2818
Chemical (Basic) 39 1.55 66.48% 7.33% 1.03 7.90% 1.12 0.5418
Chemical (Diversified) 6 1.82 36.80% 3.18% 1.42 4.49% 1.49 0.3575
Chemical (Specialty) 89 1.17 32.62% 10.71% 0.94 4.93% 0.99 0.4753
Coal & Related Energy 23 1.17 67.40% 1.75% 0.78 19.77% 0.97 0.5707
Computer Services 119 1.27 39.18% 8.75% 0.98 6.22% 1.05 0.6067
Computers/Peripherals 57 1.68 25.13% 6.60% 1.41 5.66% 1.50 0.5360
Construction Supplies 48 1.45 45.88% 13.21% 1.08 6.01% 1.15 0.4206
Diversified 23 1.36 35.47% 7.41% 1.07 6.09% 1.14 0.5055
Drugs (Biotechnology) 481 1.51 18.92% 0.93% 1.32 7.47% 1.43 0.6041
Drugs (Pharmaceutical) 237 1.47 14.36% 2.26% 1.32 4.08% 1.38 0.6491
Education 35 1.28 30.73% 6.14% 1.04 6.39% 1.11 0.5390
Electrical Equipment 116 1.32 22.14% 4.36% 1.13 4.08% 1.18 0.6493
Electronics (Consumer & Office) 19 1.19 9.77% 7.67% 1.11 9.34% 1.22 0.5770
Electronics (General) 160 1.02 19.38% 11.67% 0.89 7.63% 0.96 0.5159
Engineering/Construction 52 1.01 48.88% 7.62% 0.74 9.02% 0.81 0.4309
Entertainment 120 1.33 19.85% 1.93% 1.16 4.63% 1.21 0.6944
Environmental & Waste Services 91 1.19 33.64% 3.23% 0.95 0.87% 0.96 0.6329
Farming/Agriculture 33 0.72 66.26% 9.64% 0.48 3.43% 0.50 0.5497
Financial Svcs. (Non-bank & Insuranc 259 0.70 1138.31% 20.38% 0.07 2.58% 0.08 0.3064
Food Processing 83 0.81 46.80% 5.17% 0.60 1.83% 0.61 0.4401
Food Wholesalers 18 1.62 44.86% 4.71% 1.22 1.56% 1.23 0.5032
Furn/Home Furnishings 30 0.88 50.67% 16.96% 0.64 4.01% 0.67 0.4822
000000Global Companies 000000Betas by Sector 000000January 2016

Effective
Industry Name Number of firms Beta D/E Ratio Tax rate Unlevered beta Cash/Firm value Unlevered beta corrected for cash HiLo Risk
Green & Renewable Energy 21 1.62 146.40% 0.00% 0.77 3.24% 0.80 0.7244
Healthcare Products 248 1.12 14.86% 5.46% 1.01 3.06% 1.04 0.5501
Healthcare Support Services 111 1.15 36.22% 8.33% 0.91 11.64% 1.03 0.5389
Heathcare Information and Technolo 119 1.29 17.24% 5.65% 1.14 3.02% 1.18 0.5598
Homebuilding 31 0.98 62.24% 24.35% 0.67 7.71% 0.72 0.4157
Hospitals/Healthcare Facilities 34 1.12 139.76% 6.88% 0.55 1.27% 0.55 0.4838
Hotel/Gaming 70 1.01 63.90% 9.55% 0.68 4.35% 0.71 0.4490
Household Products 141 1.13 21.12% 7.14% 0.98 2.17% 1.00 0.6117
Information Services 71 1.12 15.06% 10.37% 1.01 3.83% 1.05 0.4209
Insurance (General) 20 0.87 47.86% 13.97% 0.64 4.45% 0.67 0.3298
Insurance (Life) 23 1.11 104.73% 3.47% 0.62 11.66% 0.70 0.2660
Insurance (Prop/Cas.) 50 0.74 25.46% 15.95% 0.62 4.52% 0.65 0.2261
Investments & Asset Management 172 1.10 67.35% 7.09% 0.73 15.38% 0.87 0.3686
Machinery 127 1.17 26.93% 13.62% 0.97 3.80% 1.01 0.4303
Metals & Mining 94 1.32 41.78% 3.06% 1.01 9.28% 1.11 0.6830
Office Equipment & Services 24 1.81 61.37% 13.71% 1.24 6.91% 1.33 0.4706
Oil/Gas (Integrated) 5 1.16 17.25% 8.91% 1.03 2.88% 1.06 0.3793
Oil/Gas (Production and Exploration) 301 1.45 55.19% 1.93% 1.03 4.32% 1.07 0.6041
Oil/Gas Distribution 20 1.07 101.28% 8.05% 0.61 2.31% 0.62 0.4091
Oilfield Svcs/Equip. 134 1.33 46.78% 4.22% 0.98 7.86% 1.07 0.5599
Packaging & Container 27 1.07 66.41% 13.01% 0.72 2.65% 0.74 0.3961
Paper/Forest Products 20 1.40 48.37% 8.42% 1.02 12.66% 1.17 0.5161
Power 51 0.54 79.41% 13.59% 0.34 1.47% 0.35 0.2332
Precious Metals 91 1.19 21.25% 2.08% 1.03 10.56% 1.15 0.6987
Publishing & Newspapers 33 1.26 70.12% 12.00% 0.82 8.39% 0.90 0.4364
R.E.I.T. 238 0.68 90.71% 2.42% 0.40 1.47% 0.41 0.1997
Real Estate (Development) 18 1.19 69.45% 0.00% 0.79 9.82% 0.87 0.5287
Real Estate (General/Diversified) 11 1.36 49.84% 7.10% 0.99 25.15% 1.33 0.4907
Real Estate (Operations & Services) 59 1.35 65.34% 8.46% 0.90 5.19% 0.95 0.5451
Recreation 72 0.98 36.32% 7.43% 0.77 4.96% 0.81 0.5168
Reinsurance 2 0.97 29.87% 9.80% 0.79 10.14% 0.88 0.1049
Restaurant/Dining 78 0.80 35.53% 8.96% 0.63 3.21% 0.65 0.4410
Retail (Automotive) 24 1.15 71.91% 8.89% 0.75 1.46% 0.76 0.4577
Retail (Building Supply) 17 1.12 22.84% 20.08% 0.95 1.35% 0.97 0.4176
Retail (Distributors) 88 1.44 65.63% 8.15% 0.96 2.28% 0.99 0.5220
Retail (General) 19 0.91 34.09% 10.85% 0.73 3.33% 0.75 0.4058
Retail (Grocery and Food) 12 0.45 83.43% 3.01% 0.28 1.19% 0.28 0.3711
Retail (Online) 79 1.42 12.00% 3.85% 1.30 3.37% 1.34 0.5960
Retail (Special Lines) 91 1.07 51.62% 13.81% 0.77 3.54% 0.80 0.5123
Rubber& Tires 4 0.42 119.65% 25.00% 0.22 7.70% 0.24 0.3703
Semiconductor 72 1.34 14.14% 10.19% 1.21 4.44% 1.26 0.4461
Semiconductor Equip 41 1.39 16.57% 13.77% 1.23 11.21% 1.39 0.4373
Shipbuilding & Marine 9 1.08 56.70% 0.00% 0.76 2.91% 0.78 0.5006
Shoe 10 0.75 7.43% 18.57% 0.72 3.53% 0.74 0.3572
Software (Entertainment) 92 1.26 2.19% 3.47% 1.24 2.56% 1.27 0.6844
Software (Internet) 44 1.46 21.65% 0.85% 1.25 3.94% 1.31 0.6444
000000Global Companies 000000Betas by Sector 000000January 2016

Effective
Industry Name Number of firms Beta D/E Ratio Tax rate Unlevered beta Cash/Firm value Unlevered beta corrected for cash HiLo Risk
Software (System & Application) 355 1.23 12.87% 4.62% 1.12 3.60% 1.16 0.5631
Steel 37 1.62 50.25% 4.18% 1.18 9.22% 1.29 0.4899
Telecom (Wireless) 21 1.26 115.78% 2.38% 0.68 4.29% 0.71 0.6199
Telecom. Equipment 98 1.09 18.05% 6.20% 0.96 6.15% 1.02 0.4932
Telecom. Services 67 1.22 89.20% 3.72% 0.73 1.50% 0.74 0.6288
Tobacco 17 1.29 25.23% 7.27% 1.09 3.52% 1.13 0.6225
Transportation 19 1.14 42.47% 5.29% 0.87 3.70% 0.90 0.4130
Transportation (Railroads) 10 2.47 26.93% 0.00% 2.05 1.27% 2.08 0.3941
Trucking 28 1.22 103.10% 1.23% 0.69 3.31% 0.71 0.4151
Utility (General) 18 0.27 71.36% 14.66% 0.17 0.55% 0.17 0.1259
Utility (Water) 19 0.42 43.00% 9.49% 0.32 0.50% 0.32 0.3758
Total Market 7209 1.12 66.64% 8.76% 0.75 6.49% 0.80 0.4864
Total Market (without financials) 6004 1.21 34.51% 6.21% 0.96 4.02% 1.00 0.5323
 000000Global Companies 000000Betas by Sector 000000January 2016

Notes
if you are looking for a pure-play beta, i.e., a beta for a business, the
unlevered beta corrected for cash is your best bet. Since even sector
betas can move over time, I have also reported the average of the this
sector beta across time in the last column. This number, for obvious
reasons, is less likely to be volatile over time.

Unlevered beta corrected for cash - Over time

Standard deviation in
operating income Average
Standard deviation of equity (last 10 years) 2015 2016 2017 2018 (2015-19)
66.44% 14.22% 0.83 0.74 0.91 0.78 0.83
40.77% 14.93% 1.06 1.20 0.94 0.99 1.05
34.19% 82.22% 0.61 0.85 0.76 0.67 0.70
48.89% 20.31% 0.86 0.88 0.71 0.85 0.81
38.24% 167.33% 0.59 0.47 0.38 0.59 0.47
44.28% 53.51% 1.14 1.08 0.94 0.92 1.01
18.29% NA 0.34 0.47 0.41 0.32 0.39
20.60% NA 0.37 0.36 0.36 0.39 0.38
33.49% 45.51% 0.89 0.82 0.71 1.12 0.92
50.32% 11.51% 0.98 0.99 0.78 0.63 0.88
37.29% 20.09% 0.83 0.75 0.70 0.65 0.69
32.08% 36.54% 0.41 0.46 0.42 0.54 0.46
33.40% 63.16% 0.93 0.98 0.87 0.99 0.94
44.86% 23.12% 1.00 0.95 0.85 1.01 0.96
26.32% 34.31% 0.70 0.89 0.82 0.67 0.77
54.33% 44.65% 0.75 0.81 0.68 0.96 0.87
32.60% 38.52% 0.99 1.27 1.22 1.79 1.35
42.33% 17.28% 0.91 1.01 0.98 0.95 0.97
53.58% 227.62% 0.83 0.39 0.61 1.04 0.77
41.69% 11.07% 0.99 1.00 0.83 0.94 0.96
49.87% 32.48% 1.17 1.22 0.94 0.93 1.15
32.24% 29.67% 1.22 1.18 1.02 0.95 1.11
39.46% 22.76% 0.70 0.74 0.63 1.01 0.84
68.96% 49.59% 1.06 1.19 1.25 1.36 1.26
72.45% 6.68% 0.95 0.94 0.93 1.13 1.06
37.66% 33.28% 0.95 0.86 1.05 0.96 0.98
57.29% 15.34% 1.14 1.03 1.04 1.02 1.08
62.71% 441.09% 1.38 1.16 0.97 1.08 1.16
46.69% 28.04% 1.01 0.98 0.83 0.91 0.94
40.14% 8.76% 1.19 1.07 1.01 1.13 1.04
54.34% 24.59% 0.99 0.98 0.97 0.96 1.02
46.15% 13.94% 0.94 0.82 0.63 0.70 0.81
29.07% 25.27% 0.58 0.77 0.62 0.56 0.60
27.33% 52.61% 0.06 0.06 0.07 0.07 0.07
27.46% 23.21% 0.82 0.74 0.63 0.56 0.67
40.99% 17.34% 1.26 0.61 0.93 1.41 1.09
43.51% 36.62% 0.92 1.00 0.69 0.67 0.79
000000Global Companies 000000Betas by Sector 000000January 2016

Standard deviation in
operating income Average
Standard deviation of equity (last 10 years) 2015 2016 2017 2018 (2015-19)
69.48% 76.39% 0.68 0.84 0.47 0.72 0.70
56.32% 11.52% 0.90 0.92 0.92 0.89 0.93
48.13% 23.27% 0.91 0.89 0.82 0.82 0.89
53.01% 29.60% 0.84 0.99 0.83 0.88 0.94
34.08% 106.97% 0.92 0.81 0.77 0.89 0.82
49.69% 25.10% 0.59 0.44 0.45 0.51 0.51
35.01% 31.98% 0.83 0.68 0.67 0.74 0.73
54.64% 5.51% 0.91 0.91 0.69 0.88 0.88
37.11% 34.13% 1.04 0.92 0.87 0.82 0.94
24.63% 78.92% 0.80 0.82 0.71 0.63 0.73
27.64% 34.68% 0.75 0.91 0.80 0.81 0.80
23.90% 58.81% 0.69 0.75 0.70 0.73 0.71
35.43% 31.54% 0.73 0.81 0.68 0.87 0.79
34.36% 21.36% 1.11 1.23 0.93 1.04 1.06
75.46% 40.16% 0.91 0.87 0.89 0.96 0.95
39.46% 14.22% 1.00 1.29 1.09 1.10 1.16
17.62% 70.40% 0.76 1.38 0.95 1.25 1.08
57.36% 144.17% 0.91 0.95 0.99 1.00 0.99
36.03% 31.61% 0.67 0.65 0.69 0.72 0.67
49.29% 45.09% 1.32 1.41 1.11 1.06 1.19
27.47% 17.02% 0.70 0.91 0.60 0.55 0.70
42.72% 26.22% 0.59 0.89 0.83 0.98 0.89
20.53% 9.03% 0.53 0.50 0.33 0.32 0.41
74.54% 68.39% 1.05 1.03 1.10 0.95 1.06
39.32% 11.72% 0.88 1.07 0.96 0.83 0.93
21.22% 33.06% 0.43 0.41 0.41 0.42 0.42
40.78% 128.52% 0.82 0.93 0.47 0.61 0.74
21.50% 181.97% 1.47 1.03 1.09 0.73 1.13
42.49% 44.41% 0.89 0.99 0.62 0.80 0.85
42.73% 47.44% 0.99 0.75 0.76 0.73 0.81
16.27% 35.84% 1.12 0.89 0.65 0.47 0.80
38.18% 16.17% 0.74 0.64 0.61 0.70 0.67
33.22% 33.22% 0.85 0.76 0.63 0.65 0.73
46.94% 31.11% 1.29 1.31 1.12 0.76 1.09
44.59% 33.33% 0.81 0.83 0.77 0.87 0.85
39.63% 6.39% 0.85 0.92 0.82 0.87 0.84
33.06% 25.50% 0.75 0.77 0.46 0.44 0.54
54.22% 28.81% 1.39 1.53 1.17 1.12 1.31
49.17% 19.55% 0.85 0.81 0.76 0.82 0.81
29.03% 40.68% 0.65 1.18 0.89 0.64 0.72
42.66% 33.27% 1.17 1.32 1.11 1.16 1.20
48.66% 67.59% 1.17 1.22 1.10 0.99 1.17
55.89% 33.84% 0.94 0.84 0.85 1.01 0.89
38.65% 24.38% 0.82 0.81 0.83 0.86 0.81
65.58% 61.18% 1.13 1.46 0.96 0.91 1.15
51.90% 54.06% 1.29 1.33 1.12 1.20 1.25
000000Global Companies 000000Betas by Sector 000000January 2016

Standard deviation in
operating income Average
Standard deviation of equity (last 10 years) 2015 2016 2017 2018 (2015-19)
50.68% 11.03% 1.06 1.25 0.99 1.02 1.10
44.32% 72.83% 0.90 0.86 1.19 1.53 1.16
44.49% 44.28% 0.51 0.65 0.58 0.71 0.63
45.72% 20.40% 1.20 1.17 0.86 0.96 1.04
54.23% 33.75% 0.69 0.57 0.68 0.72 0.68
48.08% 10.95% 0.94 1.66 1.13 1.15 1.20
33.82% 27.46% 0.77 1.19 0.83 0.80 0.90
20.12% 21.84% 0.92 0.93 0.66 0.87 1.09
41.51% 34.19% 0.92 1.03 0.76 0.81 0.84
15.34% 7.22% 0.42 0.36 0.25 0.20 0.28
42.67% 21.58% 0.77 0.33 0.47 0.27 0.43
42.67% 16.11% 0.70 0.73 0.65 0.72 0.72
46.24% 14.99% 0.87 0.9 0.85 0.90 0.90
Effective
Marginal