Unlevered beta removes any beneficial or detrimental effects gained by adding debt to the firm's capital structure. Comparing companies' unlevered betas give an investor clarity on the composition of risk being assumed when purchasing the stock. Since companies have different capital structures and levels of debt, an investor can calculate the unlevered beta to effectively compare them against each other or against the market. This way, only the sensitivity of a firm’s assets (equity) to the market will be factored in.