Organization

Content:

• New current expected credit loss (CECL) standard
• Duff & Phelps Cost of Capital Navigator International Module
• Diverse perspectives on the value of Intellectual Property (IP)
• Spotlight article: Closer look at the Duff & Phelps Millennials and Auto Trends Report

Link

by Bradford Cornell and Aswath Damodaran.

The paper analyses the promise, that easily scalable revenues of big markets can translate into large profits and high valuations for intrepreneurs.

Cornell and Damodaran examine how the “big market promise” affects business formation and financing of entrepreneurs. The focus is on a collective over pricing of companies in alleged big markets and the necessary corrections at a later time. They illustrate the thesis by three case studies from early to mature stages – the dot com retail from the 1990s, online advertising, and a third, the cannabis market. 

Link to the paper.

Update on recent capital market data. 

Content:

• Major stock market performances
• EURO STOXX 600 sector multiples
• Current risk-free rate for Austria
• Current equity risk premium for Austria
• Up-to-date country risk premiums and inflation adjusted risk-free rates for the BRICS countries

Link

Tentative Stabilization, Sluggish Recovery?

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Photo by Juliana Kozoski on Unsplash

The World Economic Forum published the 15th edition of the Global Risks Report.

Link

The report presents the major risks the world will be facing in 2020. It stresses the need for a multistakeholder approach to addressing the world’s greatest challenges.

Photo by WikiImages on Pixabay