Expanding the Cost of Capital Horizon Beyond CAPM

Business Valuation Update
Business Valuation Australia
October 15, 2016
Adam Manson, MBA

Summary

We will see many advances in estimating the cost of capital in future years, as it is still relatively unknown how risk is priced. That was one of the messages of two sessions on cost of capital at a recent valuation conference. In addition, insights were offered on such topics as normalising the risk-free rate, the ERP, the size premium, and liquidity.