TESTING THE DAMODARAN APPROACH TO ESTIMATE THE COST OF EQUITY IN EMERGING MARKETS Cover Image

TESTING THE DAMODARAN APPROACH TO ESTIMATE THE COST OF EQUITY IN EMERGING MARKETS
TESTING THE DAMODARAN APPROACH TO ESTIMATE THE COST OF EQUITY IN EMERGING MARKETS

Author(s): Kaloyan Petkov
Subject(s): Economy, Financial Markets, Public Finances
Published by: Стопанска академия »Д. А. Ценов«
Keywords: cost of equity;SMAPE';the Damodaran approach

Summary/Abstract: The cost of equity is one of the key financial and economic indicators in corporate finance. The purpose of this paper is to test the wellknown approach of Damodaran in global emerging markets. The main result of the study is that the Damodaran approach needs to be improved as it maintains constant deviation from the observed ex-post cost of equity.

  • Issue Year: 2016
  • Issue No: 1
  • Page Range: 61-74
  • Page Count: 14
  • Language: English