Session 10: Estimating Hurdle Rates - Bottom up Betas
Estimate beta for a company, starting with its business breakdown and building up.
Жүктеу.....
Пікірлер: 17
@hectordehoyos36343 жыл бұрын
I recommend watching all these short videos, it is very valuable information that will help you better understand the intrinsic valuation method. You will not find better information related to this topic, supported with a very sustainable foundation. Keep it up Aswath
@amyTNT9 жыл бұрын
It would be great if you could show the numbers you are talking about with some signs or your mouse. I am a non-native English speaker but I really love watching your videos. It is just somehow hard to follow you with the numbers and your verbal calculations
@seoaneespinoza73018 жыл бұрын
In the last part. How determined the cost of equity ( min 15.06) i thinks could be with CAPM if that ok you use de Beta leverage.? risk free rate and ERP wiht Implied ERP. Any help ?
@harishganesan6223 жыл бұрын
But beta measures the volatility w.r.t stock market in that country. How can i use two beta which are relative to different markets and arrive at a beta that will be relative to the stock market in US. This is little confusing for me . Can you please shed some information on this .
@pantelisloupos44849 жыл бұрын
Is there any easy way (e.g. from bloomberg terminal) to find out what are the traded companies in a particular industry sector? Many thanks for the lectures!
@yamakakatimakaka
3 жыл бұрын
in an indirect way, yes. You open the list of companies in the index (member weightings), then right-click the header and add the column with sector/industry names. You can then filter the companies by sector/industry in excel
@rodrigoribeirovieira28944 жыл бұрын
Disney example - beta by business breakdown 5:13 minute
@mapa54976 ай бұрын
why he did that 97%? i mean what is the relationship between cash and beta?
@leoxu96732 жыл бұрын
How is the ERP calculated in a particular business sector?
@DeltaVal4P3 жыл бұрын
Isn't it a problem that we don't cash-adjust our company's beta ? Since we (i guess) can't get cash/sector, we skip this part and lever the business betas to get our final beta. But this way, we ignore the amount of cash the company has...?
@birzhanbereket4297
Жыл бұрын
I think because we value only operating assets (EBIT) without interest income on cash
@surakshachoudhary28809 жыл бұрын
To adjust for the 3% cash on average in the movie companies, you took the beta that you had and multiplied it by 0.97 to come up with the beta for the movie business alone. I would guess that the 3% cash would have exerted a downward pressure on beta*, so without this cash (or in other words after adjustment) the beta would actually be higher. Consequently, shouldn't the factor to be multiplied be greater than 1? *since cash should have a beta close to 0.
@surakshachoudhary2880
9 жыл бұрын
Sorry, I just realized we are dividing by 0.97 and not multiplying. That makes sense, thank you!
Пікірлер: 17
I recommend watching all these short videos, it is very valuable information that will help you better understand the intrinsic valuation method. You will not find better information related to this topic, supported with a very sustainable foundation. Keep it up Aswath
It would be great if you could show the numbers you are talking about with some signs or your mouse. I am a non-native English speaker but I really love watching your videos. It is just somehow hard to follow you with the numbers and your verbal calculations
In the last part. How determined the cost of equity ( min 15.06) i thinks could be with CAPM if that ok you use de Beta leverage.? risk free rate and ERP wiht Implied ERP. Any help ?
But beta measures the volatility w.r.t stock market in that country. How can i use two beta which are relative to different markets and arrive at a beta that will be relative to the stock market in US. This is little confusing for me . Can you please shed some information on this .
Is there any easy way (e.g. from bloomberg terminal) to find out what are the traded companies in a particular industry sector? Many thanks for the lectures!
@yamakakatimakaka
3 жыл бұрын
in an indirect way, yes. You open the list of companies in the index (member weightings), then right-click the header and add the column with sector/industry names. You can then filter the companies by sector/industry in excel
Disney example - beta by business breakdown 5:13 minute
why he did that 97%? i mean what is the relationship between cash and beta?
How is the ERP calculated in a particular business sector?
Isn't it a problem that we don't cash-adjust our company's beta ? Since we (i guess) can't get cash/sector, we skip this part and lever the business betas to get our final beta. But this way, we ignore the amount of cash the company has...?
@birzhanbereket4297
Жыл бұрын
I think because we value only operating assets (EBIT) without interest income on cash
To adjust for the 3% cash on average in the movie companies, you took the beta that you had and multiplied it by 0.97 to come up with the beta for the movie business alone. I would guess that the 3% cash would have exerted a downward pressure on beta*, so without this cash (or in other words after adjustment) the beta would actually be higher. Consequently, shouldn't the factor to be multiplied be greater than 1? *since cash should have a beta close to 0.
@surakshachoudhary2880
9 жыл бұрын
Sorry, I just realized we are dividing by 0.97 and not multiplying. That makes sense, thank you!
How did you get the pure play betas?
@seoaneespinoza7301
8 жыл бұрын
Unlevered Beta corrected for Cash = Unlevered Beta (1 - Cash/ Firm Value)
@fakenamekholmein1874
2 жыл бұрын
@@seoaneespinoza7301 i missed this, very helpful. cheers
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