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ESG Valuation Considerations – Top Down or Bottom Up?

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Alpha is an adjustment made to the Capital Asset Pricing Model (“CAPM”) as part of the calculation of the Weighted Average Cost of Capital, or “WACC.” Their article provides and overview of intangible asset valuation and its challenges. The Multiperiod Excess Earnings Method, (“MEEM”) has more promise.

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ESG A Valuation Framework

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Eight years ago, an article in the Financial Times quoted the infamous management consultant Peter Drucker in the context of corporate reporting of ESG related topics: “What gets measured gets managed.” Their article provides and overview of intangible asset valuation and its challenges. 9 That was eight years ago!