Cross-Border Valuation
CoC in Cross-Border Valuation
When discounting cross-border cash flows, several questions arise: which country’s cost of capital should be used? In which currency? And how should the beta of a subsidiary company […]
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Category: [:en]WACC, CoC, Structure[:]
WACC, CoC, Structure
WACC
How Do I Find the Discount Rate to Determine the Fair Price of a Specific Organization? The sensitivity of an organization’s value to the discount rate is very […]
WACC, CoC, Structure
Monte-Carlo Simulation
Do you know the value of your organization? Knowing and increasing the value of a commercial organization is a fundamental responsibility of top management. However, in developing countries […]
Market Efficiency
Economic Rent
Does your organization generate “economic rent”? How often can this occur? Economic rent is the surplus that accrues to capital above the weighted average cost of capital (WACC). […]
WACC, CoC, Structure
Cost of Debt
To calculate the WACC, it is also necessary to know the cost of debt, and this is not simply the interest rate. Essentially, the interest rate and the […]
Risk
Risk Premium
In the simplest terms, the risk premium is defined as the difference in annual returns between stocks and risk-free bonds. However, measuring it in practice is not an […]
Risk
Risk Aversion vs. Age
Research confirms that the price of capital risk is closely related to the age of investors. As investors age, their appetite for risk decreases. Consequently, the older the […]