Warning to Business Valuers Looking to Use New ESG Ratings

Business Valuation UpdateVol. 27 No. 10
October 2021
valuation methods & approaches
cost of capital, income approach, risk analysis, cash flow, discounted cash flow (DCF)

Summary

A hot topic today is environmental, social, and governance (ESG) factors and how to reflect the impact of these factors in business valuations and financial reporting. Data are starting to emerge to help quantify the impact of ESG—but analysts need to be careful in using these data.