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What Is Equity Risk Premium?

Andrew Stolz

Definition of Equity Risk Premium. It is the difference between expected returns from the stock market and the expected returns from risk-free investments. What Impacts the Equity Risk Premium? How Do You Calculate Equity Risk Premium? Why is the Equity Risk Premium Important?

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What is Beta in Finance, and why is it Essential for a Business Valuation?

Equilest

What is Beta in Finance, and why is it essential for a business valuation? Are you considering evaluating a business using an excel template without understanding Beta in Finance? In Finance - the beta represents how sensitive the stock price is concerning the market price change (index). Think again!

Beta 40
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Methods of Business Valuation by Their Profitability

Equilest

Want to know Methods of Business Valuation by Their Profitability? Methods of business valuation by their profitability are presented below. Thus two companies with the same level of results but different future performance risks will have different values. Read our explanation. 11% per year. 10% per year.

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Arbitrage Pricing Theory (APT) - Can it Enhance Valuation?

Equilest

Finance professionals and investors have widely used this theory as a powerful tool to predict stock prices and portfolio returns. meaning that 10% of the stock's risk is specific to the country in which the company is based. Next, we need to estimate the risk-free rate and the risk premium for each risk factor.

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How to Value a Business in the Diversified Real Estate Activities Industry

Equilest

Market volatility, regulatory changes, interest rate fluctuations, tenant turnover, and project-specific risks are examples of factors that can impact a company's value. Assessing and quantifying these risks helps determine an appropriate discount rate or risk premium when calculating the company's value.

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How to Value a Business in the Real Estate Operating Companies Industry

Equilest

These factors include market volatility, interest rate fluctuations, regulatory changes, tenant turnover, and property management risks. Assessing and quantifying these risks helps determine an appropriate discount rate or risk premium when calculating the company's value. How often should I update the business valuation?

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How to Value a Business in the Real Estate Development Industry

Equilest

Market volatility, regulatory changes, interest rate fluctuations, environmental concerns, and construction risks are some examples of factors that can impact a business's value. Assessing and quantifying these risks helps determine an appropriate discount rate or risk premium when calculating the business's present value.