Global betas for 134 industries and "regional" betas for 10 geographical areas—including North America, the EU, and Western Europe—can be found in the Industry Betas study from Salvidio & Partners, a Rome, Italy-based business valuation firm headed by Ascanio Salvidio. His firm has begun producing a quarterly report on levered and unlevered industry betas, and BVWire readers can download the current 3Q 2017 Industry Betas report here for free.
To avoid thinly traded or small companies, Salvidio's beta calculation is based on listed companies: 1) that have had a minimum market capitalization of €50 million in the last five years; and 2) whose shares’ daily traded value was never less than one one-hundredth of their average market capitalization in the same period.
Salvidio & Partners Industry Beta Quarterly Report is unique in combining industry and geographical perspectives and also in featuring two distinct series of levered and unlevered betas. The first series includes levered and unlevered betas estimated for any selected company, regardless of whether its gross debt is higher or lower than its cash and cash equivalents. The second series excludes "net liquidity" to represent companies where “decisions taken by management, all other circumstances being equal, may be different in case of the company’s gross debt being higher or lower than cash and equivalents,” says Salvidio.
Feedback wanted: Salvidio & Partners hopes that its quarterly industry betas study will provide valuers with useful information about industry risk in cost of capital calculation, improving the quality of their analyses around the world. Salvidio welcomes feedback from BVWire readers on how to improve the study, and you can contact him here.
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