Musings on Markets
AUGUST 5, 2023
If you have been reading my posts, you know that I have an obsession with equity risk premiums, which I believe lie at the center of almost every substantive debate in markets and investing. That said, I don't blame you, if are confused not only about how I estimate this premium, but what it measures.
Valutico
FEBRUARY 27, 2024
In this article, we’ll cover the basics of what a discount rate is and where it’s used. In this article, we cover the latter. Capital Asset Pricing Model (CAPM): According to CAPM, the expected return on a stock has two main components: the risk-free rate and a risk premium. What is a discount rate?
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Equilest
JANUARY 7, 2025
A high M-Score could indicate higher risk, warranting a higher discount rate and thus a lower valuation. Using our sliding scale, we might apply a 10% discount to the valuation:$100 million - (10% $100 million) = $90 millionThis adjusted valuation reflects the increased risk associated with potential earnings manipulation.
Equilest
JULY 31, 2022
According to the CAPM model - the return required by the shareholders can be described using the following equation: Cost of Equity = Risk-Free Rate + Beta x Risk Premium. The explanation we gave at the top of the article seems complex, and for a good reason. Last but not least, this article explained the issue of Beta.
Simply Treasury
AUGUST 2, 2022
The definition of "net equity" is as follows: equity of the company = sum of subscribed capital, share premiums, revaluation reserves, reserves and retained earnings, minus the tax value of the company's holdings in associated companies and the tax value of its own shares. risk premium if the company is an SME as defined by European law).
Equilest
APRIL 11, 2023
With limited features and formulas, it can be difficult to account for all the necessary parameters in a valuation, such as interest rates, equity risk premiums, and beta. In this article, we will discuss why Excel is not the right tool for valuing businesses and why you should use Equitest instead.
Equilest
APRIL 12, 2023
This will enable you to get an economic analysis of your industry, as well as the earning multiple, sales multiple, beta, and risk premium, all automatically from the Equitest database. Tip 4: Update Your Data Regularly The value of a service-based business can change quickly, especially if the business is growing rapidly.
Expert insights. Personalized for you.
98 
Let's personalize your content