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ESG Valuation Considerations – Top Down or Bottom Up?

Value Scope

Intangible asset valuation concepts can and should be applied to unique ESG cash flows. This work can be used to reconcile and support an adjustment to the CAPM, then the WACC, via Alpha and Beta. They combine elements of the Income Method, which is cash flow based, and the Market Method, which is based on comparative analysis.

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ESG A Valuation Framework

Value Scope

Will ESG assets be recorded on balance sheets one day soon, just as intangible assets such as goodwill and intellectual property are recorded today? 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.