article thumbnail

ESG Valuation Considerations – Top Down or Bottom Up?

Value Scope

Alpha is an adjustment made to the Capital Asset Pricing Model (“CAPM”) as part of the calculation of the Weighted Average Cost of Capital, or “WACC.” The Multiperiod Excess Earnings Method, (“MEEM”) has more promise. Using Alpha, however, it could be done.

article thumbnail

ESG A Valuation Framework

Value Scope

Alpha is an adjustment made to the Capital Asset Pricing Model (“CAPM”) as part of the calculation of the Weighted Average Cost of Capital, or “WACC.” The Multiperiod Excess Earnings Method, (“MPEEM”), has more promise. Using Alpha, however, it could be done.