How does Yahoo Finance calculate beta values? - Quora

Any Beta that comes for a Service such as Yahoo or Bloomberg is a regression Beta. Never trust a single Regression Beta spitted out by a Service. Give me a Bloomberg Terminal with 30 minutes to spare and I will come up with any Beta you want to suit the valuation. Why? because a regression Beta regresses the company in question against an Index (so choose a different index, you get a different Beta). Why? because a regression Beta is regressed using a particular time frame (say over 100 Weeks using weekly time frames, so choose 50 Weeks and daily time frame and you will get a different Beta). Why? because regression Betas come with a standard deviation which makes them useless. Why? Because regression Betas are levered Betas which means they are levered at a Debt / Equity ratio depicting the past not the future so they are incorrectly levered. I could go on and on as to why SINGLE regression Betas from Yahoo or Bloomberg are useless. What's the SOLUTION? You must compute what we call a

Any Beta that comes for a Service such as Yahoo or Bloomberg is a regression Beta. Never trust a single Regression Beta spitted out by a Service. Give me a Bloomberg Terminal with 30 minutes to spare and I will come up with any Beta you want to suit the valuation. Why? because a regression Beta regresses the company in question against an Index (so choose a different index, you get a different Beta). Why? because a regression Beta is regressed using a particular time frame (say over 100 Weeks using weekly time frames, so choose 50 Weeks and daily time frame and you will get a different Beta).