Alternatives to the CAPM: Part 4: Market-Implied cost of equity
aswathdamodaran.substack.com
As you can see from each of the alternatives laid out in the previous three parts, there are assumptions and models underlying each alternative that can make users uncomfortable. So, what if you want to estimate a model-free cost of equity? There is a choice, but it comes with a catch.
Alternatives to the CAPM: Part 4: Market-Implied cost of equity
Alternatives to the CAPM: Part 4…
Alternatives to the CAPM: Part 4: Market-Implied cost of equity
As you can see from each of the alternatives laid out in the previous three parts, there are assumptions and models underlying each alternative that can make users uncomfortable. So, what if you want to estimate a model-free cost of equity? There is a choice, but it comes with a catch.