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Implied Risk Premium in a Market
  • Implied Risk Premium in a Market
Originally published: 20/06/2016 17:28
Last version published: 02/02/2018 14:49
Publication number: ELQ-21334-3
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Implied Risk Premium in a Market

An Excel Model to calculate the implied risk premium in a market

Prof. Aswath Damodaranby Prof. Aswath Damodaran
Professor at NYU Stern School of BusinessFollow 1,092
NYU Stern School of Businesswith NYU Stern School of Business
An Education in PossibleFollow 62
12 reviews1,228 views|Start the discussion!|Bookmark download for free
financerisk premiumdiscounted cash flow valuationdcfmarket neutral valuationsolver
Description
This Excel Valuation Spreadsheet model calculates the implied risk premium in a market. This can be used in discounted cashflow valuation to do market neutral valuation.

- Prof. Aswath Damodaran

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This Best Practice includes
1 Excel Model File, 1 ReadMe

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Further information

The objective of this model is to get the following output values:
- Implied Risk premium in current level of Index
- Intrinsic Value of Index (Value + Premium)


4.6 / 5 (12 votes)

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