Valutico

FEBRUARY 27, 2024

To refine the selection of the discount rate, it’s important to draw on inputs from credible sources regarding economic, industry and company specific risk factors. It is often referred to as the “market risk premium.” Small-cap stocks are often considered riskier and may command a size premium.

Discounted Cash Flow 52

Discounted Cash Flow Risk Premium Risk-free Rate Weighted Average Cost of Capital 52

Andrew Stolz

AUGUST 5, 2020

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. Investments are exposed to two types of risk: systematic and unsystematic. beta of a stock). E(r) = Rf + ??(Rm

Risk-free Rate 52

Risk-free Rate Beta Weighted Average Cost of Capital Risk Premium 52

Musings on Markets

FEBRUARY 10, 2021

If you put all your money in one or the other of these companies, you are exposed to all these risks, but if you spread your bets across a dozen or more companies, you will find that company-specific risk gets averaged out. More on that issue in a future data update post.) Cost of equity in US $ for German project = 1% + 1.1

Risk-free Rate 52

Risk-free Rate Risk Premium Start-ups Equity 52