Archive for May, 2011

Financial Modeling Ed Series: Calculate Beta using Excel

Posted on May 19th, 2011 in Blog

Financial Modeling is the basic tool for company valuations. And for building a financial model, one parameter you would need is stock beta for calculating cost of capital. For those of you interested in knowing how to calculate beta practically, here is a step by step approach. Beta = Covariance (stock returns with market returns) [...]

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Financial Modeling Ed Series: Understanding Beta

Posted on May 19th, 2011 in Blog

“This stock is highly volatile. Is this company more risky than the broad market?” Quotes like these are seen or heard when we are going through the newspaper or watching any business channel. How do we conclude if a company is riskier than the market? If it is riskier than the market then it should [...]

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