Musings on Markets
JANUARY 17, 2024
Going into 2024, investors are clearly in a better mood about what is to come this year, than they were a year ago, but they are pricing in that better mood. In contrast, at the start of 2024, the lifting of fear has led to higher prices, a more upbeat forecast of earnings and an expected return of 8.48% and an equity risk premium of 4.60%.
Musings on Markets
JULY 1, 2022
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.
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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.
Valutico
AUGUST 10, 2023
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. Therefore, negotiations often play a pivotal role in reaching a consensus.
Equilest
JULY 10, 2023
Ratios such as price-to-earnings (P/E), price-to-sales (P/S), and return on investment (ROI) help compare the company's financial performance to industry benchmarks. Assessing and quantifying these risks helps determine an appropriate discount rate or risk premium when calculating the company's value.
Equilest
JULY 10, 2023
Ratios such as price-to-earnings (P/E), price-to-sales (P/S), and return on investment (ROI) help compare the company's financial performance to industry benchmarks. These factors include market volatility, interest rate fluctuations, regulatory changes, tenant turnover, and property management risks.
Valutico
SEPTEMBER 13, 2023
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. Therefore, negotiations often play a pivotal role in reaching a consensus.
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