Cost of Equity and COVID-19: What to Do?

Business Valuation UpdateVol. 26 No. 6
June 2020
Peter J. Butler, CFA, ASA
valuation methods & approaches
beta, cost of capital, coronavirus, COVID-19

Summary

A forward-looking approach, implied volatilities, and total beta are used to determine an appropriate cost of equity during “unprecedented” times such as we have now to supplement one’s analysis.