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The Largest Risk (and Opportunity) Investors Are Ignoring

Harvard Business Review

A key target for Ceres’ work, and the main audience at the conference, is the group of institutional investors who manage tens of trillions of dollars in assets for long-term performance. ” The value of the companies owning and managing those assets, the logic goes, will plummet. coal market.

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How Corporate Investors Can Improve Their Odds

Harvard Business Review

VCs, they’re told, take more of a long-term approach, have a greater degree of risk tolerance, and parcel out their funds in stages to mitigate risk. Ideas with positive discounted cash flows get investment. All of this is right, as far as it goes. Three companies end up taking 60% of all investment dollars.

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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.

CAPM 14
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What is the importance of pre-money valuation For Your Business?

Strategy Driven

The long-term effects of the added value are more than compensatory to the lower pre-money. Discounted Cash Flow. Example of Pre Money Valuation. The following is an example of a business undertaking a finance process and its pre-money valuation. Precedent Transactions. Comparable Companies.