Remove Beta Remove Demo Remove Risk Premium
article thumbnail

How to value SMEs: A Simplified Roadmap

Valutico

It needs to incorporate both the project risk and the opportunity cost, typically done using the CAPM method. However, market information required for CAPM, such as beta coefficients and risk premiums, may not be available for SMEs. Why not book your demo here to find out how Valutico can help you in valuing SMEs.

article thumbnail

Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

Rf = Risk-free Rate. B = Beta. (Rm Rm – Rf) = Equity Market Risk Premium. Cp = Cost of Equity Premium. DCF WACC—similar to the above except that it calculates a different WACC in each forecast period based on a changing capital structure (D/E) and thus a changing beta in each period. Cost of Debt.