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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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Understanding the Company-Specific Risk Premium: A Guide for Attorneys

Gross Mendelsohn

Understanding risk factors is essential in determining how a business will be valued. Let’s consider what your business-owning clients need to know about company-specific risks and how they come into play when it’s time for a business valuation.

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Why Excel is not an Effective Business Valuation Tool?

Equilest

While Excel may be a popular tool for business analysis, it falls short when it comes to accurate business valuations. With limited features and formulas, it can be difficult to account for all the necessary parameters in a valuation, such as interest rates, equity risk premiums, and beta.

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How to Use Equitest Business Valuation Software to Value a Service-Based Business

Equilest

Want to learn more about how to accurately value your service-based business using Equitest Business Valuation Software? Keep reading for a step-by-step guide! Valuing a service-based business can be a complex process, but with Equitest business valuation software, it can be made easier.

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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 that case, you are welcome to use our business valuation software or our business valuation calculator.

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

And the factor loading for country risk might be 0.1, 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. x 5%) + (0.2 x 4%) + (0.1 x 5%) + (0.2 x 4%) + (0.1