Data Update 4 for 2024: Danger plus Opportunity - Risk enters the Equation!

Video Description

Risk is at the center of finance, both in the context of business decision making and investments. In this session, I start by breaking risk down into buckets and looking at the evolution of measures of risk. I look at differences across companies and regions, using both price-based and intrinsic risk measures. I then look at risk variations across countries and how they play out as different equity risk premiums. In closing, I look at how the inputs in this and the prior to two data updates help in computing the cost of capital, why that cost of capital affect decision making and the distribution of costs of capital, at the start of 2024. Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/blog/DataUpdate4for2024.pdf Blog Post: https://aswathdamodaran.blogspot.com/2024/01/data-update-4-for-2024-danger-and.html Cost of capital paper: https://pages.stern.nyu.edu/~adamodar/pdfiles/papers/costofcapital.pdf Country risk paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4509578 Equity Risk Premiums, by country: https://pages.stern.nyu.edu/~adamodar/pc/datasets/ctryprem.xlsx