New Meta-Analysis Study Reveals Diminished Size Premium

Business Valuation UpdateVol. 25 No. 12
December 2019
cost of capital
cost of capital, discount rate, private company valuation, risk analysis, cost of equity, size effect

Summary

There have been many studies on the size premium but with conflicting results. Now, the first “meta-analysis” of the size premium provides an estimate that is smaller than what many people believe, according to a new paper.