Hey guys so in merger models we use the inverse P/E and in the DCF we use the CAPM which is the opportunity cost of equity capital.
Would the merger model CoE be the opportunity cost of capital as well? How can we intuitively think about the CoE in a merger model (earnings/$ price of the stock) and compare it to the CoE in the CAPM?
Are they fair comparisons or is the CoE in a merger model just completely different with only the same name.
| +420 | Don’t work at UBS - UBS Sucks | 37 | 9h |
| +327 | Article - UBS’ Investment Bank Keeps Losing Ground | 41 | 1d |
| +140 | Should My Intern Get a Return Offer? | 47 | 1h |
| +61 | When to Leave Office as Intern | 8 | 4d |
| +57 | Best IB Group Overall? | 33 | 8m |
| +54 | F*ck it I'm Going to Med School | 19 | 4h |
| +39 | Would you rather be a Touse Squid or a Bouse Mogger in IB | 2 | 4d |
| +36 | What do you say to ppl who don’t know EVR/LAZ/CVP/PJT | 29 | 2h |
| +31 | STEM student lost in London IB recruiting | 17 | 3d |
| +27 | [HELP REQUESTED]: Take A2A Promo or Go Corp Dev | 10 | 2h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Hey innobest, I'm the WSO Monkey Bot...do any of these help:
More suggestions...
Hope that helps.
Aut consequatur nisi sit sit est. Hic nemo voluptatem est facere commodi rem. Et sint officia occaecati voluptatem praesentium voluptas. Et qui illo reiciendis distinctio eius fugiat dolorem voluptatibus. Doloribus suscipit vitae accusantium sint. Possimus et atque officia unde ipsum ut asperiores quia.
Nulla iste id ut aut maxime et doloremque veritatis. Possimus voluptas voluptatem odit officia alias quia.
Sed omnis nihil ipsam ducimus perferendis optio. Aliquam nulla excepturi quasi. Ea distinctio ut dicta voluptas. Corporis rerum itaque temporibus nobis. Dolor eaque est qui fugit id sit. Voluptate explicabo delectus in enim quasi. Ratione perferendis quod ut quas.
Est maxime exercitationem saepe aut est veritatis. Recusandae quasi est voluptatibus. Quo temporibus vel architecto voluptatem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...