article thumbnail

How ESG Ratings Can Affect a Firm’s Cost of Equity

Reynolds Holding

2019) , for example, strong ESG performance correlates positively with higher equity returns and a reduction in downside risk. In a new paper, we address the impact of ESG ratings on a firm’s financial performance by studying how those ratings affect the cost of equity (COE). Sussman (2019). Nuttall (2019).

Equity 40
article thumbnail

2024 Investment & Market Updates: How to Reverse a Painful Year with AI Hype and a Frenzied 2-Month Rally

Brian DeChesare

and far too little in equities. When the markets rallied after the initial COVID sell-off in March 2020, I put more cash into equities and real estate. And I reallocated these proceeds into crypto and equities and put in some excess cash. But my real estate investment funds were down ~10% , which hurt. I sold most of my U.S.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Data Update 2 for 2022: US Stocks kept winning in 2021, but…

Musings on Markets

If equity markets surprised us with their resilience in 2020, not just weathering a pandemic for the ages, but prospering in its midst, US equity markets, in particular, managed to find light even in the darkest news stories, and continued their rise through 2021. The year that was.

article thumbnail

A Follow up on Inflation: The Disparate Effects on Company Values!

Musings on Markets

In my last post , I discussed how inflation's return has changed the calculus for investors, looking at how inflation affects returns on different asset classes, and tracing out the consequences for equity values, in the aggregate.

article thumbnail

Let’s Talk About Dilution

Farrel Fritz

Equity dilution is another common method by which those in control of a corporation or LLC attempt to squeeze out a minority owner. Dilution and Excessive Compensation Challenges to dilutive equity awards commonly focus on equity that the company elects to award its employees or officers as compensation.

Equity 59
article thumbnail

Is BP’s new strategy – full focus on profits – viable in the long term?

Valutico

Furthermore, the company increased dividends by 10% and announced that it will buy back GBP 2.3 (USD In 2019, the company announced that it plans to reduce its oil and gas output by 40% by 2030. by using the Discounted Cash Flow method, specifically our Flow-to-Equity approach, as well as a Trading Comparables analysis.

article thumbnail

Review the concept of WACC

Andrew Stolz

This is a Valuation Master Class student essay by Teeradon Piyakiattisuk from March 19, 2019. A firm uses a mix of equity and debt to minimize the cost of capital. A firm uses a mix of equity and debt to minimize the cost of capital. The popular method to find the cost of equity is the Capital Asset Pricing Model (CAPM).

Beta 52