Value Scope

JULY 21, 2020

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.

Intangible Assets 130

Intangible Assets Beta Alpha Unlevered Beta 130

Equidam

APRIL 26, 2025

Key value drivers include intangible assets like intellectual property, the strength and experience of the founding team, the perceived size of the market opportunity, network effects, brand recognition, and, critically, the projected ability to generate significant cash flows in the future.

Discounted Cash Flow 59

Discounted Cash Flow Terminal Value Book Value Beta 59

Value Scope

SEPTEMBER 24, 2020

Will ESG assets be recorded on balance sheets one day soon, just as intangible assets such as goodwill and intellectual property are recorded today? Adjustments to Beta can accomplish this. For example, in a recent valuation we completed, the mean unlevered Beta of a group of 10 comps was 0.58.

Intangible Assets 130

Intangible Assets Alpha Beta Marketability 130

Equidam

APRIL 22, 2025

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] Equidam utilizes country-specific MRP data calculated by Professor Damodaran. [23]

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64