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

Value Scope

They combine elements of the Income Method, which is cash flow based, and the Market Method, which is based on comparative analysis. These approaches can be distilled into one central concept: adjusting the discount rate. 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

That said, this lens of due diligence has changed how the market invests. A factor of investment in the market is based on sentiment and belief in performance. Uncertainty in market signals. This is important because it gives the markets a realistic assessment of those risks. Exposure to litigation. Technology.