Robert A. Bonavito, CPA PC


Hamada’s Equation

Hamada’s equation is very important in finance and was invented by and named after Robert Hamada. The formula is used to separate financial risks from business risk. This formula takes out the effect of financing from a company’s beta. This formula is extremely useful because once a beta is un-levered we can then use it to compare to other companies with different capital structures.

Posted January 2, 2019 by Robert aABonavito in Business Valuations