Remove CAPM Remove Cost of Capital Remove Development Remove Discounted Cash Flow
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Still Many Ways to Skin a Capital Cost

Harvard Business Review

Estimating the rate at which to discount the cash flows — the cost of equity capital — is an integral part of the exercise, and the choice of rate has a significant effect on estimates of a project's or a company's value. The same is true for the CAPM. ". by James J. McNulty, Tony D.

CAPM 14
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What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

In operational engineering, PE firms develop industry and operating expertise that they bring to bear to add value to their portfolio companies. Rather, they rely on internal rates of return and multiples of invested capital.

CAPM 8
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Why Sit on All that Cash? Firms Uncertain on Cost of Capital

Harvard Business Review

Many are deeply uncertain about which initiatives they should fund — and one root of this indecision is a general lack of confidence in the cost of capital projections they are using to make the call. We find that 55 percent of respondents are convinced their cost of capital estimates are off by more than 50 basis points.