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!
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