Equilest

JULY 31, 2022

What is Beta in Finance, and why is it essential for a business valuation? Are you considering evaluating a business using an excel template without understanding Beta in Finance? In statistics, beta is defined as the slope of a straight line. Why is beta important in valuing companies? Think again!

Beta 40

Beta Business Valuation Finance Discounted Cash Flow 40

Andrew Stolz

AUGUST 5, 2020

It helps an investor understand what to expect to earn in relation to the risk-free rate and the market return. CAPM assumes that the minimum a rational investor would earn is the risk-free rate by buying the risk-free asset. beta of a stock). appeared first on Valuation Master Class.

Risk-free Rate 52

Risk-free Rate Beta Weighted Average Cost of Capital Risk Premium 52

Andrew Stolz

AUGUST 6, 2020

The return on assets is determined by systematic factors such as changes in inflation , risk premiums, interest rates, etc. Investors construct portfolios with unsystematic risks, which are well-diversified to reduce total portfolio risk. Inflation rate: ß = 0.6, The risk-free rate is 5%.

Risk-free Rate 52

Risk-free Rate Risk Premium Beta Marketability 52