ESG Valuation Considerations – Top Down or Bottom Up?

Value Scope

This work can be used to reconcile and support an adjustment to the CAPM, then the WACC, via Alpha and Beta. Adjustments to Beta can accomplish this. Beta measures systemic risk, and the performance of a company as compared with a broad index like the S&P 500 or the Russell 2000.

ESG A Valuation Framework

Value Scope

Adjustments to Beta can accomplish this. Beta measures systemic risk, and the performance of a company as compared with a broad index like the S&P 500 or the Russell 2000. For example, in a recent valuation we completed, the mean unlevered Beta of a group of 10 comps was 0.58.