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

Business Valuation UpdateVol. 26 No. 8
August 2020
Peter J. Butler, CFA, ASA
valuation methods & approaches
beta, cost of capital, coronavirus, COVID-19

Summary

Using a forward-looking approach, implied volatilities, and total beta to determine an appropriate cost of equity to supplement one’s analysis during today’s unprecedented times.