Beta Comps Market Risk 
Equidam
APRIL 26, 2025
Comparable Transactions (as a Primary Method): This method, often referred to as “comps,” involves applying valuation multiples (e.g., This incorporates the risk-free rate, a market risk premium specific to the company’s country, and Beta ($beta$).
Valutico
OCTOBER 20, 2022
the multiple based or ‘ comps ’ (comparable company analysis) approach. Rf = Risk-free Rate. B = Beta. (Rm Rm – Rf) = Equity Market Risk Premium. Risk free rate (can use 10y Treasury). Market Return. The first is 1. the asset-based approach also known as the cost-based approach, and finally 3.
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] 23] Risk-Free Rate: Tied to government bond yields (e.g.,
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