Equity risk premium - survey of estimation methods
Equity risk premium - survey of estimation methods
Author(s): Katarzyna Byrka-KitaSubject(s): Economy
Published by: Wydawnictwo Naukowe Uniwersytetu Szczecińskiego
Keywords: cost of capital; risk premium; valuation
Summary/Abstract: Equity risk premium is a key component into estimating costs of equity in valuation. There are three approaches to the equity risk premium estimation: traditional, ex-ante and survey method. The main purpose of this paper is to present them and discuss their limitations. However in practice the estimates calculated by various analysts and scientists differ significantly. The purpose of this differences results from the several factors which influence the final result of the calculations.
Journal: Studia i Prace WNEIZ US
- Issue Year: 2013
- Issue No: 34/1
- Page Range: 37-52
- Page Count: 16
- Language: Polish