Classical single-factor comparable company valuation (CCV) like e.g. valuation using the price-earnings ratio is associated with several shortcomings. The two most important are the non-applicability of negative values in the basis of reference and the high requirements to the qualitative...

The discount rate is one of the most critical variables in every equity valuation. Against this background it is surprising that so far there is no generally accepted definition of this term. Literature provides quite different definitions: expected returns, conditionally expected returns or...