Risk
Precision formulas for β
One reason for using comparable companies’ data to derive the beta of a listed company is that it yields a more accurate beta. Is it worth the effort? […]
Archive
Category: [:en]WACC, CoC, Structure[:]
Risk
4 Versions of Un-Levering Formulas
When valuing an organization, it’s easy to make mistakes if you approach the calculation of Cost of Equity and WACC superficially — because intrinsic value is highly sensitive […]
Risk
Debt Rating
Among a CFO’s typical target KPIs is improving the company’s credit rating, as it directly impacts the organization’s value through its effect on the Cost of Debt (CoD) […]
Risk
Expected Default and CoD
How to Calculate Expected Default Loss on a Bond? The cost of debt is often confused with the yield to maturity (YTM) of a bond/loan. The promised return […]
Risk
β vs Financial Leverage:
An organization’s capital (#equity) is subject to systemic risk related to industry cyclicality, operational leverage, and financial leverage… The most significant impact on this uncertainty is seen in […]
Market Efficiency
Estonian Model Impact on CF
We are setting up Executive KPIs in a company, and during the process, the task arose of calculating WACC and assessing its impact on the organization’s value. Typically, […]
Market Efficiency
Dividends Irrelevance
Does it matter if you purchase an Income stock or a Growth stock? Does a company’s decision to distribute dividends or reinvest earnings impact the stock price? The […]