WealthEsteem.org Psychology of the Deal

Calculate the Beta Coefficient of a stock

Beta CoefficientAs part of the Corporate Finance subject of my MBA we have to calculate the beta coefficient (aka Beta) of a company’s share price. The is applied economics and market mathematics, but it simply is a number which indicates how closely (or not) a company’s share price moves in relation to a broader market (or an index like the S&P ASX200 or the Dow Jones Industrial Average).

Anyway, part of the process is to create an excel format spreadsheet to aid with the calculation. I’ve done it and thought I share it with you. It will work with any spreadsheet program that can open .xls files

Update 1: 31 July 2009 the new version is available for testing by requesting it in a comment below. Once the testing is complete I’ll make it freely available to registered users.

Update 2: 7 July 2011 For a limited time you can get the Beta Coefficient Calculator without registering. Enter a valid email address in this form to receive a link to download the file. You’ll also get an email about new versions and bug fixes (with an opt-out link).

Update 3: 23 July 2011 If the form doesn’t work for you, please comment below and I’ll email it to you. The form is quicker but some people can’t get the download.

[download file=”Beta-Coefficient-Calculator-Wealth-Esteem-v0.9b8.zip” title=”Beta Coefficient Calculator by Wealth Esteem”]

Version 0.9 beta_8
* Enabled automatic download via web form
* Added French and German to Translation tab (alpha code there)

Version 0.9 beta_7
* Fixed bug in date text description
* Updated sample data to 6 Jun 2011
* Changed sample data to BHP Billiton
* Made Instructions tab text translatable
* Cosmetic fixes

Version 0.9 beta_6
* Explained Translation tab in instructions and asked for volunteers
* Updated sample data to 2011
* Updated copyright date to 2011

Version 0.9 beta_5
* Added Change Log tab
* Moved text of index symbol & stock symbol to translation tab

Version 0.9 beta_4
* Added explanation of index and stock symbol fields on Beta Coefficient tab
* Updated copyright date to 2010

Version 0.9 beta_3
* Added email address to instructions tab

Version 0.9 beta_2
* Added logic to translate number of periods to a date range and show that range to users in Beta Coefficient tab at C11
* Swapped order of Security and Index tabs
* Fixed bug in coefficient calculation
* Introduced version numbering and control

Version 0.9 beta_1
* Updated instructions tab

Version 0.9 beta
* Initial public version

Support and feedback via the comments below.

Related Posts:

Paul Zagoridis

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93 responses to “Calculate the Beta Coefficient of a stock”

  2. hi, is there any chance I can get to see your beta calculation with the formulas on the excel spreadsheet?
    pls, it’s an emergency so I hope to hear from u soon.
    Ann

    Reply

  3. @Ann I’ve emailed you a spreadsheet. The old spreadsheet I had up was corrupt so I removed it, then promptly changed laptops and lost it.

    In the meantime the best spreadsheet I’ve found for Beta Coefficient Calculation is at Money-Zine.com. You can download a spreadsheet from there.

    Reply

  7. May you please send me your excel spreadsheet with formulas to calculate beta coefficient. Thanks in advance for your help. Rgds

    Reply

  8. Hey Paul Zag! Long time no speak!
    Was wondering if you still had that beta spreadsheet. Finishing off my BBus (Financial Planning) and need to calculate Beta for a company… and do all the other gear. Anyways, if you could shoot thru an email, it’d be great. I checked the website you suggested, but it’s just got the CAPM calculator that requires you to already have a value for beta…. which of course is what I’m trying to ascertain.

    Hope to hear from you soon mate.
    Cheers
    BR

    Reply

  10. I’ve just about finished rebuilding the spreadsheet and am making available for testing. Everyone who’s left a comment so far should have received a spreadsheet from me, but the latest version has only been available this week so @Allan and @kim got it.

    Anybody else who wants to test it can comment here and I’ll email them the current version.

    Once it goes live it will be available for free but you’ll have to register with a valid email address to get it. I wont be spamming you, just want to know who’s using my work.

    Reply

  11. Hi Paul. Would you mind resending the beta spread sheet please to my new email address above, my partner mistakenly deleted it. Many thanks Kim

    Reply

  13. Please make your excel spreadsheet for Beta calculations available to me. I am taking an intermediate excel course along with an introductory finance course–and need practice!

    Reply

  19. Paul,

    If you could possibly send the spreadsheet to me, I would so appreciate it. I have a group assignment with an online course, and no one in the group is understanding the examples given to us. Thanks!

    Reply

  22. Paul, is it possible to add me to the list of people in need of the spreadsheet?
    Thanks a lot.
    The longer you leave this post the more people you get!

    Reply

  27. can you email me anything that can help calculate stock beta. i’m working on a finance project in which i am given the company’s excess returns and the excess returns market portfolio. i have to find the stock beta and correlation coefficient. it would greatly appreciated.

    also if you have instructions for creating a characteristic line graph in excel that would be awesome!-thanks

    Reply

  28. Paul:

    I’m coming late to the party. Regardless, I’d appreciate being emailed a copy of your Excel spreadsheet for calculating Beta for stocks. Thanks in advance.

    Jay

    Reply

  31. OK everybody up to Natu should have a copy now. Please let me know what you think of it, or suggest any updates.

    Thanks to Steven for some really valuable suggestions that I’m working on now.

    Regards

    Paul

    Reply

  36. Could I also get a copy of your beta spreadsheet calculation? I am taking an investments class and this would really help.
    Thanks,
    Maria

    Reply

  43. Dear Paul,
    Am working on an assignment and would be a great help if you could send me a copy of your Beta calculator. Have been struggling a lot to calculate the beta values.

    Thanks,
    Arjo

    Reply

  44. Hola Pablo,
    Estoy haciendo un trabajo y sería una gran ayuda si me pueden enviar una copia de hoja de cálculo Beta.
    Gracias,
    Luis Fernando

    Reply

  45. Hi Paul

    Your Beta spreadsheet is popular! Is it possible that I also get a copy of your Beta Calculation spreadsheet? Much appreciated, thanks, Feroze

    Reply

  51. Dear Paul, i just came across your blog and will be immensely grateful if you could send me a copy of your latest excel beta calculations with the formula. you will be a life saver doing this.

    best regards

    Reply

  52. Hey paul…
    Could you please email me the spreadsheet along with formulas. I need it ASAP…
    Your help would be highly appreciated.
    Cheers!

    Reply

  56. Hi Paul,

    This is Dhiren, I have read lot many comments and appreciation for your excel sheet. I am also enthusiastic to have this sheet in my laptop. Can you be please so nice to me?
    I will be greatful to you, if you do so please.

    Reply

  57. hi! um working on my assignment which will be due on the 26th, would you please plase email me the excel sheet, if you still have it..thank you soooooo much.

    Reply

  58. hi! um working on my assignment which will be due on the 29th, would you please please email me the excel sheet, if you still have it..thank you soooooo much.

    Paige

    Reply

  60. Hi Paul,

    Kindly ask you to send me your excel spredsheet for calculation of beta coefficient.
    Corporate Finance is realy pleasent subject ! You can really contribute for that with your spread sheet.
    Ivo

    Reply

  66. Hi Paul,

    I am working on a research work that required to analyze beta values. Can you please send me the Beta Calculation Spreadsheets.

    Regards,
    Hara

    Reply

  75. hey you could you please email me the spreadsheet as well…need it for my Value Computation in Finance class for my MBA…thanks!

    Reply

  81. Okay everyone before this comment should have received their Beta Coefficient Calculator via email. Hopefully it made it through your spam traps.

    You can get the latest version by clinking on the link in the post above. We’re up to version 0.9beta_8

    Any support questions or feature requests please post them as a comment.

    Paul

    Reply

    • The zip file contains a single excel spreadsheet. The first tab of the spreadsheet contains notes.

      Read the notes, follow the instructions, update the data and it will show you the Beta Coefficient of your security.

      Reply

  88. Please leave a comment if you can’t get the spreadsheet. I’m reviewing the delivery method. Ideally I want to email the spreadsheet to you, but the plugin I use doesn’t do that well..

    Most comments will be moderated so wont show up immediately. But I do see them all.

    Reply

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