| Matching Fundamental Risk and Return
Program Type: VideoCast (Audio,Video, PPT Presentation)
Program Level: Overview
Prerequisites: Learning activity level that provides a general review of a subject area from a broad perspective
Advanced Preparation: None
Delivery Method: Group Internet-Based
CPE Credits: One (1) Hour
Fields of Study: Finance
Shipping Weight: 0lbs. 0oz.
Valuation analysts typically have quantified the relationship between risk and expected return by measuring risk in terms of beta and size. The Risk Premium Report Risk Study uses three fundamental or accounting information measures of profitability and earnings variability to predict returns.
This webinar will discuss: (1) using fundamental or accounting information as a predictor of return, and (2) how to use the Risk Premium Report Risk Study’s “Comparative Risk Study” to further refine cost of equity estimates by gauging how alike or different the subject company is compared to the companies that make up the Risk Premium Report Risk Study portfolios.
After completing this webinar, attendees will be able to:
- Differentiate between stock-market-based predictors of return (e.g., beta, size) and fundamental or accounting information predictors of return
- Estimate the cost of equity capital using fundamental or accounting information predictors of return
- Refine cost of equity estimates by gauging how alike or different the subject company is compared to the companies that make up the Risk Premium Report Risk Study portfolios
Who Should Attend
Traditional professional valuation analysts, CPAs, judges, and attorneys who deal with valuation issues, corporate finance officers, investment bankers
Mr. James P. Harrington is a director at Duff & Phelps.
James provides technical support on client engagements involving cost of capital and business valuation matters, and is a leading contributor to Duff & Phelps’ efforts in the development of studies, surveys, online content and tools, and firm-wide valuation models.
Previously, James was director of valuation research in Morningstar's Financial Communications Business, and led the group that produced the Ibbotson SBBI Valuation Yearbook, Ibbotson SBBI Classic Yearbook, Ibbotson Cost of Capital Yearbook, various international cost of capital reports, and also Morningstar’s online “cost of capital resources center”.
James is co-author of:
• Valuation Handbook – Guide to Cost of Capital
• Valuation Handbook ? Industry Cost of Capital
• International Valuation Handbook – Guide to Cost of Capital
• International Valuation Handbook – Industry Cost of Capital (forthcoming)