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Discount Rate—Explanation, Definition and Examples

Valutico

Beta as a Measure of Risk: CAPM introduces the concept of beta, which measures the stock’s sensitivity to market movements. A beta of 1 indicates that the stock moves in line with the market, a beta greater than 1 suggests higher volatility, and a beta less than 1 implies lower volatility.

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Data Update 1 for 2025: The Draw (and Danger) of Data

Musings on Markets

Beta & Risk 1. While some of the variables are obvious, others are subject to interpretation, and I have a glossary , where you can see the definitions that I use for the accounting variables. Return on Equity 1. Debt Ratios & Fundamentals 1. Debt Details 1. Dividends and Potential Dividends (FCFE) 1. Buybacks 2. I am sorry!

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What is the Capital Asset Pricing Model (CAPM)?

Andrew Stolz

Definition of Capital Asset Pricing Model. When an investor buys a particular security, they consider the risk of that security relative to the riskiness of the overall market and adjust the equity risk premium up or down by using Beta. beta of a stock). What Impacts the Capital Asset Pricing Model? E(r) = Rf + ??(Rm

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Data Update 4 for 2022: Risk = Danger + Opportunity!

Musings on Markets

In this post, I will start with a working definition of riskt that we can get some degree of agreement about, and then look at multiple measures of risk, both at the company and country level. At the start of 2022, the ten sectors (US) with the highest and lowest relative risk (unlettered betas), are shown below.

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Lantheus to Acquire Life Molecular Imaging for an Upfront Payment of $350 Million to Accelerate Innovation for Patients in the Growing Alzheimer's Disease Radiodiagnostic Market

Benzinga

13, 2025 (GLOBE NEWSWIRE) -- Lantheus Holdings, Inc. ("Lantheus" or the "Company") (NASDAQ: LNTH ), the leading radiopharmaceutical-focused company committed to enabling clinicians to Find, Fight and Follow disease to deliver better patient outcomes, today announced a definitive agreement to acquire Life Molecular Imaging Ltd.

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What Is Cost of Equity?

Andrew Stolz

Definition of the Cost of Equity. The systematic risk of the security (Beta). beta of a stock.). To compensate for the risks that shareholders take, firms pay them in return. The theoretical return the firm pays its equity investors (shareholders) is known as the cost of equity. What Impacts the Cost of Equity? Risk-free rate .

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9 Startup Valuation Methods: 5 to Use, 4 to Avoid

Equidam

Valuation as a Process, Not Just a Number A common misconception is that startup valuation aims to pinpoint a single, definitive “right” number representing the company’s price. This incorporates the risk-free rate, a market risk premium specific to the company’s country, and Beta ($beta$).