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What is Systematic Risk? And why it's Essential to Business Valuation

Equilest

Systematic risk is measured using beta - which expresses the sensitivity of the company's situation relative to the state of the economy. You can read about the beta and its effect on the value - in this article. In this article, we have discussed the impact of Beta on valuation.

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What is Systematic Risk? And why it's Essential to Business Valuation

Equilest

Systematic risk is measured using beta - which expresses the sensitivity of the company's situation relative to the state of the economy. You can read about the beta and its effect on the value - in this article. In this article, we have discussed the impact of Beta on valuation.

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How to value SMEs: A Simplified Roadmap

Valutico

However, market information required for CAPM, such as beta coefficients and risk premiums, may not be available for SMEs. Why not book your demo here to find out how Valutico can help you in valuing SMEs. The discount rate is another contentious area. The post How to value SMEs: A Simplified Roadmap appeared first on Valutico.

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Announcement: Valutico Provides Easier Way to Value Startups

Valutico

The calculation of these discount rates are based on the observed betas of similar listed peer companies. If you want to learn more about the VC Method, book your demo here. The post Announcement: Valutico Provides Easier Way to Value Startups appeared first on Valutico.

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Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

B = Beta. (Rm DCF WACC—similar to the above except that it calculates a different WACC in each forecast period based on a changing capital structure (D/E) and thus a changing beta in each period. Try booking a demo , if this applies to you. Ce = Cost of Equity. Rf = Risk-free Rate. Rm – Rf) = Equity Market Risk Premium.