Musings on Markets

FEBRUARY 11, 2023

In this section, I will begin measures of country default risk, including sovereign ratings and CDS spreads, before moving to more expansive measures of country risk before concluding with measures of equity risk premiums for countries, a pre-requisite for estimating the values of companies with operations in those countries.

Risk Premium 76

Risk Premium Start-ups Equity Marketability 76

Chris Mercer

MARCH 7, 2024

Provisions in the organizational and governance documents that affect the rights, restrictions, marketability and liquidity of the subject interest. Defined expiration or termination dates contained in the governing documents, or other external factors, that may precipitate a foreseeable liquidation or sale of the underlying entity.

Dividends 52

Dividends Appraisal Terminal Value Marketability 52

Musings on Markets

MARCH 19, 2022

The overriding message in all of this data is that Russia/Ukraine war has unleashed fears in the bond market, and once unleashed that fear has pushed up worries about default and default risk premia across the board.

Start-ups 100

Start-ups Risk Premium Equity Market Capitalization 100

Equilest

JULY 10, 2023

Assessing and quantifying these risks helps determine an appropriate discount rate or risk premium when calculating the company's value. Conducting Due Diligence Thorough due diligence is vital in the valuation process.

Business Valuation 40

Business Valuation Asset-based Approach Risk Premium Price to Earnings 40

Equilest

JULY 10, 2023

Assessing and quantifying these risks helps determine an appropriate discount rate or risk premium when calculating the company's value. Conducting Due Diligence Thorough due diligence is essential in the valuation process.

Business Valuation 40

Business Valuation Asset-based Approach Risk Premium Price to Earnings 40

Equilest

JULY 10, 2023

Assessing and quantifying these risks helps determine an appropriate discount rate or risk premium when calculating the business's present value. Conducting Due Diligence Thorough due diligence is vital in the valuation process.

Business Valuation 40

Business Valuation Risk Premium Marketability Finance 40

ThomsonReuters

MAY 6, 2021

The adjustment added to the risk-free rate to arrive at the risk-adjusted rate is often referred to as the “risk premium.” The risk premium reflects that market participants require compensation for taking on uncertainty. The risk premium may incorporate factors such as credit risk or market illiquidity.

Discounted Cash Flow 52

Discounted Cash Flow Risk-free Rate Risk Premium Intangible Assets 52