Debt beta is the result of the ratio of credit spread and market risk premium. If it is taken into account, the company value usually increases.

The risk-free interest rate corresponds to the return on an investment that is not subject to default risk. In addition to reliability, the term and currency are other features that determine the amount of this so-called base interest rate. In the following article, you can find out what to consider when determining the base interest rate.

Against the backdrop of the ongoing low interest rate environment, the IDW Technical Committee for Business Valuation and Business Administration (FAUB) published a clarifying addition to the derivation of the standard net present value equivalent base interest rate in July 2016.

Learn why raw beta and adjusted beta are important in CAPM and how they impact risk assessment.

Errors associated with the beta factor can be avoided by paying attention to whether the Tax Shield is secure or unsafe.

Discounting interest rate and cost of capital: Definition, calculation, IDW requirements

We explain the background, controversy and effects of risk premiums in the evaluation of SMEs.