Angie · learn
Startup beta adjust
Dampens an unstable post-IPO beta by 15%. A company with only months of trading history measures its own novelty as much as its risk.
A fuller explanation of this one is still being written. The definition above is the short answer.
See also
- Beta — How much the stock moves relative to the S&P 500. A beta of 1.0 moves with the market, higher is more volatile, and higher volatility raises the discount rate.
- Cost of equity — The return shareholders demand for owning this particular company. Known as CAPM, the capital asset pricing model.
Educational content, not investment advice. Angie explains how a valuation is built so you can judge it yourself. What you do with that is your call.
