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 2024

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

For global datasets: https://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 57 1.18 1.37 27.67% 4.27 4.96
Aerospace/Defense 70 0.93 1.08 33.25% 2.80 3.24
Air Transport 25 0.64 1.27 35.83% 1.79 3.54
Apparel 38 0.93 1.19 36.48% 2.55 3.28
Auto & Truck 34 1.30 1.52 32.52% 4.01 4.68
Auto Parts 39 1.12 1.34 36.31% 3.09 3.70
Bank (Money Center) 15 0.64 1.06 47.27% 1.36 2.25
Banks (Regional) 625 0.33 0.46 25.26% 1.32 1.83
Beverage (Alcoholic) 19 0.97 1.13 25.49% 3.81 4.44
Beverage (Soft) 29 0.70 0.76 27.25% 2.58 2.80
Broadcasting 22 0.50 1.06 31.03% 1.61 3.42
Brokerage & Investment Banking 27 0.55 1.12 51.03% 1.08 2.20
Building Materials 44 1.21 1.32 46.99% 2.57 2.80
Business & Consumer Services 162 0.93 1.02 34.03% 2.73 3.00
Cable TV 10 0.74 1.28 48.98% 1.50 2.61
Chemical (Basic) 32 0.87 1.10 28.83% 3.03 3.80
Chemical (Diversified) 4 0.81 1.13 35.20% 2.31 3.22
Chemical (Specialty) 68 0.94 1.09 38.79% 2.42 2.80
Coal & Related Energy 18 1.24 1.27 25.53% 4.87 4.98
Computer Services 72 0.86 1.00 26.84% 3.20 3.72
Computers/Peripherals 36 1.10 1.13 35.13% 3.13 3.22
Construction Supplies 11 0.85 0.94 46.83% 1.82 2.00
Diversified 23 1.09 1.19 34.39% 3.18 3.47
Drugs (Biotechnology) 572 1.09 1.12 23.82% 4.57 4.72
Drugs (Pharmaceutical) 245 0.94 1.03 20.19% 4.68 5.09
Education 31 1.15 1.23 28.46% 4.03 4.31
Electrical Equipment 103 1.15 1.24 29.19% 3.93 4.25
Electronics (Consumer & Office) 13 1.30 1.30 34.81% 3.74 3.72
Electronics (General) 129 0.88 0.93 30.40% 2.89 3.07
Engineering/Construction 77 0.92 1.06 37.95% 2.44 2.79
Entertainment 98 0.87 0.99 23.38% 3.70 4.25
Environmental & Waste Services 57 0.79 0.91 23.34% 3.37 3.89
Farming/Agriculture 42 0.77 0.99 24.59% 3.13 4.03
Financial Svcs. (Non-bank & Insurance) 192 0.33 1.14 39.90% 0.82 2.86
Food Processing 93 0.57 0.71 25.24% 2.26 2.80
Food Wholesalers 14 0.74 0.97 39.58% 1.86 2.44
Furn/Home Furnishings 31 0.86 1.11 33.52% 2.57 3.30
Green & Renewable Energy 17 0.56 1.11 26.11% 2.13 4.24
Healthcare Products 230 1.01 1.06 29.08% 3.46 3.65
Healthcare Support Services 119 0.94 1.03 26.38% 3.56 3.91
Heathcare Information and Technology 128 1.19 1.27 34.34% 3.46 3.71
Homebuilding 32 1.35 1.37 47.96% 2.82 2.86
Hospitals/Healthcare Facilities 32 0.56 0.88 28.64% 1.96 3.07
Hotel/Gaming 68 1.05 1.34 40.51% 2.59 3.32
Household Products 19 0.72 0.78 36.10% 1.99 2.16
Information Services 18 0.77 0.93 42.27% 1.83 2.20
Insurance (General) 21 0.89 1.03 36.65% 2.44 2.82
Insurance (Life) 23 0.54 0.77 37.82% 1.43 2.02
Insurance (Prop/Cas.) 50 0.68 0.74 34.71% 1.95 2.13
Investments & Asset Management 334 0.39 0.46 19.73% 1.98 2.32
Machinery 103 0.94 1.03 41.66% 2.25 2.46
Metals & Mining 68 0.91 0.96 17.04% 5.35 5.65
Office Equipment & Services 17 0.88 1.14 36.47% 2.40 3.12
Oil/Gas (Integrated) 4 0.64 0.67 24.75% 2.60 2.71
Oil/Gas (Production and Exploration) 166 0.82 0.93 19.52% 4.21 4.76
Oil/Gas Distribution 24 0.53 0.79 34.15% 1.55 2.32
Oilfield Svcs/Equip. 100 0.85 0.98 22.25% 3.83 4.40
Packaging & Container 11 0.59 0.87 50.48% 1.18 1.72
Paper/Forest Products 7 1.59 1.94 32.55% 4.89 5.95
Power 50 0.39 0.65 38.01% 1.02 1.71
Precious Metals 61 0.83 0.87 16.74% 4.96 5.19
Publishing & Newspapers 13 0.81 0.92 30.81% 2.62 2.98
R.E.I.T. 181 0.65 1.02 50.94% 1.28 2.01
Real Estate (Development) 17 0.43 0.67 19.82% 2.18 3.37
Real Estate (General/Diversified) 11 0.51 0.56 31.78% 1.61 1.77
Real Estate (Operations & Services) 60 0.88 1.08 28.87% 3.06 3.74
Recreation 55 0.85 1.17 37.16% 2.28 3.15
Reinsurance 1 0.61 0.66 37.42% 1.63 1.75
Restaurant/Dining 64 1.02 1.19 37.93% 2.70 3.15
Retail (Automotive) 30 1.06 1.49 38.28% 2.77 3.90
Retail (Building Supply) 16 1.70 1.94 54.00% 3.16 3.59
Retail (Distributors) 62 0.91 1.11 39.10% 2.33 2.83
Retail (General) 26 1.17 1.25 44.49% 2.63 2.80
Retail (Grocery and Food) 14 0.36 0.49 26.99% 1.35 1.83
Retail (REITs) 28 0.79 1.12 59.85% 1.31 1.87
Retail (Special Lines) 105 0.97 1.18 33.07% 2.94 3.57
Rubber& Tires 3 0.26 0.67 23.36% 1.13 2.89
Semiconductor 63 1.46 1.50 46.84% 3.12 3.19
Semiconductor Equip 30 1.51 1.53 51.45% 2.93 2.97
Shipbuilding & Marine 8 0.69 0.81 24.69% 2.78 3.28
Shoe 13 1.27 1.29 41.98% 3.03 3.08
Software (Entertainment) 84 1.11 1.11 26.93% 4.14 4.12
Software (Internet) 35 1.51 1.62 35.55% 4.25 4.55
Software (System & Application) 351 1.27 1.29 33.74% 3.77 3.84
Steel 29 1.08 1.13 35.14% 3.07 3.21
Telecom (Wireless) 13 0.75 1.09 20.10% 3.72 5.41
Telecom. Equipment 66 1.05 1.08 28.23% 3.70 3.83
Telecom. Services 42 0.41 0.78 23.86% 1.74 3.29
Tobacco 16 0.99 1.22 24.61% 4.01 4.97
Transportation 110 0.84 1.00 21.61% 3.91 4.62
Transportation (Railroads) 4 0.86 1.02 54.63% 1.57 1.86
Trucking 22 1.03 1.15 45.11% 2.28 2.55
Utility (General) 14 0.36 0.58 46.42% 0.77 1.25
Utility (Water) 13 0.52 0.71 38.14% 1.37 1.87
Total Market 6481 0.79 1.00 30.58% 2.59 3.27
Total Market (without financials) 5194 0.97 1.10 31.32% 3.11 3.50

Last Updated in January 2024
By Aswath Damodaran