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Industry beta in business valuation
The financial markets are a complex environment in which companies constantly fluctuate. But why do some sectors react more strongly to general market developments than others? The answer lies, among other things, in the so-called sector betas. Understanding sector betas is essential for auditors and tax consultants. This is because they provide valuable information on the risk of companies and play a decisive role in business valuation. In this article, we explain what sector betas are, how they are calculated and how they are used in day-to-day work.