Since the outbreak of COVID-19, industry risks have changed very materially. With a backdrop of high inflation, interest rate hikes, and recent market events, investors and private companies are faced with higher cost of capital, which has a direct impact on their investment decisions. To determine the most cost-effective means of raising capital and evaluate capital allocation options, companies need to understand how betas from industry peers have evolved in the current environment. Join our subject matter experts for a practical session that includes a case study discussion on Developing and Selecting CAPM Betas. To understand how to assess different beta estimates, our Kroll experts will give a walkthrough of the new Company-Level Beta module in the Cost of Capital Navigator.

Learning Objectives

• Review which inputs impact a historical CAPM beta calculation
• Distinguish different methods of estimating betas
• Evaluate the statistical quality of a beta estimate
• Identify circumstances when different unlevering and relevering beta methods are more appropriate
• Utilize the new Company-level Beta Module in the Cost of Capital Navigator online platform to evaluate beta estimates

This webcast will qualify for 1.0 CPE credit