Remove Alpha Remove Beta Remove Excess Earnings Method Remove Intangible Assets
article thumbnail

ESG Valuation Considerations – Top Down or Bottom Up?

Value Scope

Intangible asset valuation concepts can and should be applied to unique ESG cash flows. This work can be used to reconcile and support an adjustment to the CAPM, then the WACC, via Alpha and Beta. Adjustments to Beta can accomplish this. The re-levered Beta for the private company we were valuing was 0.56.

article thumbnail

ESG A Valuation Framework

Value Scope

Will ESG assets be recorded on balance sheets one day soon, just as intangible assets such as goodwill and intellectual property are recorded today? While we might not have an answer right now about the regulatory aspects of ESG reporting, this paper will introduce analytical methods for providing valuations of ESG performance.