Since the outbreak of COVID-19, industry risks have changed very materially. With a backdrop of high inflation, interest rate hikes and recent market events, investors and private companies are faced with higher cost of capital, which has a direct impact on their investment decisions. To determine the most cost-effective means of raising capital and evaluate capital allocation options, companies need to understand how betas from industry peers have evolved in the current environment.
Kroll Managing Director Carla Nunes, Director Kevin Madden and Vice President Aaron Russo hosted this webinar for a case study discussion on developing and selecting CAPM Betas. They also discussed how to assess different beta estimates and gave a walkthrough of the new Company-Level Beta module in the Kroll Cost of Capital Navigator.
If you didn’t get a chance to attend our webinar and still want CPE credits, please watch our on-demand webinar to get your certificate.
Key takeaways:
- Review which inputs impact a historical CAPM beta calculation
- Distinguish different methods of estimating betas
- Evaluate the statistical quality of a beta estimate
- Identify circumstances when different unlevering and relevering beta methods are more appropriate
- Utilize the new Company-level Beta Module in the Cost of Capital Navigator online platform to evaluate beta estimates
