Remove Beta Remove Discounted Cash Flow Remove Equity Remove Unlevered Beta
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ESG Valuation Considerations – Top Down or Bottom Up?

Value Scope

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. Obviously the lower the discount rate, the higher the valuation, all other items held constant.

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ESG A Valuation Framework

Value Scope

ESG in Equity Analysis and Credit” analysis was published in 2018 by the PRI, the Principles of Responsible Investment arm of the UN, and the CFA Institute. 13 Less than a year ago “Foundations of ESG Investing: How ESG Affect Equity Valuation, Risk, and Performance” was published in the Journal of Portfolio Management.