Equity risk premiums of continental regions
Many multinational comps aggregate their yearly turnovers for different regions (Europe, Latin America, Asia-Pacific, Emerging Markets, etc.) and mostly not for single countries. When using the following formula by Prof. Damodaran:
Expected cost of equity = U.S. Treasury bond rate + Beta * (U.S. Equity risk premium) + Weights * (Country risk premiums)
I cannot estimate the weights of each country risk premium based on local revenues and don't know how to benefit from the country risk premiums published on his website to calculate the expected cost of equity of a global corporation based on the company's specific mix of country risk premiums.
Unfortunately, I could not find an answer to this question and would be happy for any advice!
Adipisci libero perferendis dicta aliquam repellat et. Sit facilis eos fugit facere voluptatibus.
Dolores aspernatur iusto earum aut itaque. Nulla tempora voluptates nihil error deserunt est. Sunt est sit aut tempore perferendis. Non totam velit vel.
Ullam necessitatibus amet vel voluptatem voluptatem ut. Exercitationem molestiae rem quaerat rerum sit ut. Tempora deserunt alias facilis quia quia.
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...