CAPM, Development and Discounted Cash Flow

Still Many Ways to Skin a Capital Cost

Harvard Business Review

MARCH 10, 2011

Estimating the rate at which to discount the cash flows — the cost of equity capital — is an integral part of the exercise, and the choice of rate has a significant effect on estimates of a project's or a company's value. The same is true for the CAPM. ". McNulty et al.

CAPM

CAPM Cost Discounted Cash Flow Cost of Capital

Why Sit on All that Cash? Firms Uncertain on Cost of Capital

Harvard Business Review

MARCH 10, 2011

Fully 79 percent of companies, including 91 percent with annual revenues greater than $1 billion, use discounted cash flow techniques. There is less consistency, however, in how organizations estimate cash flows and determine the weighted average cost of capital at which those cash flows are discounted.

Cost of Capital

Cost of Capital CAPM Cost Discounted Cash Flow

What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

JUNE 18, 2015

In operational engineering, PE firms develop industry and operating expertise that they bring to bear to add value to their portfolio companies. Furthermore, few PE investors explicitly use the capital asset price model (CAPM) to determine a cost of capital.

CAPM

CAPM Discounted Cash Flow Company Rate of Return

Leadership Digital

Still Many Ways to Skin a Capital Cost

Why Sit on All that Cash? Firms Uncertain on Cost of Capital

What Private Equity Investors Think They Do for the Companies They Buy

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