3 different ways to calculate Equity risk premium for India

www.valuetortoise.com

One of the most popular ways to value a listed company is to run a discounted cash flow (DCF) valuation. For this method, you estimate the future cash flow of a company and discount them back to the present using a discount rate. This discount rate known as Cost of Equity or Cost of Capital is calculated usually using a model called CAPM and one of the most important variables of the model is the Equity Risk Premium.

## 3 different ways to calculate Equity risk premium for India

## 3 different ways to calculate Equity risk…

## 3 different ways to calculate Equity risk premium for India

One of the most popular ways to value a listed company is to run a discounted cash flow (DCF) valuation. For this method, you estimate the future cash flow of a company and discount them back to the present using a discount rate. This discount rate known as Cost of Equity or Cost of Capital is calculated usually using a model called CAPM and one of the most important variables of the model is the Equity Risk Premium.