Risk
The Pastor-Stambaugh Model
Startup Valuations: Venture Funds vs. The Pastor-Stambaugh Model In the evaluation of startup valuations, venture capital funds often rely on The Pastor-Stambaugh model (PSM) instead of the Capital […]
Archive
Category: [:en]WACC, CoC, Structure[:]
Risk
Cost of Equity Formulas
According to the M&M theory, the formula for unlevering and levering capital is straightforward, but there are variations of the formula adapted to different situations. Situations can vary […]
Cross-Border Valuation
Country Risk in Valuation
Evaluating organizations operating in developing countries is associated with certain difficulties, and in this area, academics and practitioners often do not agree. The issue is that developing markets […]
WACC, CoC, Structure
Credit Rating Determinants
When evaluating an organization, one of the important decisions concerns the target leverage, which affects the WACC (Weighted Average Cost of Capital) and consequently the valuation outcome (naturally, […]
WACC, CoC, Structure
Optimal Leverage Range
The optimal level of financial leverage is determined, on the one hand, by the amount of tax savings an organization receives by deducting interest expenses, and on the […]
WACC, CoC, Structure
Payout Decisions
The decision to pay dividends or repurchase shares impacts stock prices due to the expectations and signals such decisions create. Therefore, these decisions need to be systematic and […]
WACC, CoC, Structure
Capital Structure & Value
Financial theory tells us that there is an optimal capital structure derived from tax savings and the risks of financial leverage, but it says little about how to […]