Cost of equity
ESG & GovernanceThe return shareholders require for holding a company's shares, usually estimated as the risk-free rate plus beta times the equity risk premium, plus any company-specific premium.
Some analysts add a premium for weak governance or high ESG risk. Evidence on the size of such premiums is mixed, so any adjustment is a judgement that should be stated and tested. In Indian promoter-controlled companies, governance quality is often the ESG factor most likely to justify one.
Related terms
Learn the concept
From the research
A Comparative Financial Analysis of Three Listed Companies
Three IT services leaders, five years of numbers: similar growth, very different margins and returns on capital, and their October 2026 valuations.
MarketsIPO Issue Price vs. Listing Price vs. Subsequent Performance
Seven of India's most talked-about IPOs since 2021, tracked from issue price to listing to October 2026. Buying on listing day lost money in six of seven.
ValuationPaytm: Valuing a Company With No Clean Comparable
Paytm is part payments processor, part device business, part loan distributor. Why no single peer fits, and how to value it in parts and in reverse.