Remove 2022 Remove Beta Remove Systematic Risk
article thumbnail

What is Systematic Risk? And why it's Essential to Business Valuation

Equilest

What is systematic risk? Learn how you can use the systematic risk for a successful EXIT! Many entrepreneurs and business owners think that risk means loss. But in fact, risk means volatility. In this article, we will focus on systematic risk. What is the effect of systematic risk on value?

article thumbnail

What is Systematic Risk? And why it's Essential to Business Valuation

Equilest

What is systematic risk? Learn how you can use the systematic risk for a successful EXIT! Many entrepreneurs and business owners think that risk means loss. But in fact, risk means volatility. In this article, we will focus on systematic risk. What is the effect of systematic risk on value?

article thumbnail

Startup Valuation: The Ultimate Guide

Equidam

10] , [23] , [2] Discount Rate: The rate used to discount future cash flows is typically the cost of equity, calculated via the Capital Asset Pricing Model (CAPM): Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium. [23] 23] Collectively, rising interest rates and increased market risk lead to higher discount rates.