Remove Blog Remove Price to Earnings Remove Risk Premium
article thumbnail

Risk Capital and Markets: A Temporary Retreat or Long Term Pull Back?

Musings on Markets

And Consequences If you are wondering why you should care about risk capital's ebbs and flows, it is because you will feel its effects in almost everything you do in investing and business. That pullback has had its consequences, with equity risk premiums rising around the world.

article thumbnail

Methods of Business Valuation by Their Profitability

Equilest

This multiple is similar, by analogy, to the PER (Price to Earnings Ratio of listed companies). Thus two companies with the same level of results but different future performance risks will have different values. On the other hand, the risk premium corresponds to the risk of investing money in this particular company.