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Discount Rate—Explanation, Definition and Examples

Valutico

To refine the selection of the discount rate, it’s important to draw on inputs from credible sources regarding economic, industry and company specific risk factors. The WACC represents the overall cost of financing a company’s operations and is used to discount future cash flows to their present value.

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What is the Capital Asset Pricing Model (CAPM)?

Andrew Stolz

If an investor moves money from the risk-free asset into the stock market, they should expect to earn a return in excess of the risk-free rate, what is called an equity risk premium. Unsystematic risks are risks specific to a particular stock, which is why they are also called, company-specific risk.

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Beta Explained: What It Is and How to Calculate It

Valutico

In the world of finance and investing, the concept of beta plays a vital role in assessing an investment’s risk and volatility. Beta, in finance, is a measure of a stock or portfolio’s sensitivity to market movements. It quantifies an asset’s risk relative to the market.

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Appraiser Newsroom - Untitled Article

Appraiser Newsroom

Kevin holds an MBA in finance from Georgia State University and a Bachelors in Chemical Engineering from the Georgia Institute of Technology. Finance Professor | Pepperdine Graziadio Business School Craig R. Everett is a finance professor at the Pepperdine Graziadio Business School. a Software as a Service company.

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How to Value a Business in the Diversified Real Estate Activities Industry

Equilest

Market volatility, regulatory changes, interest rate fluctuations, tenant turnover, and project-specific risks are examples of factors that can impact a company's value. Assessing and quantifying these risks helps determine an appropriate discount rate or risk premium when calculating the company's value.