Demystifying a Company’s Systematic Risk
The Michel-Shaked Group’s Israel Shaked, and Brad Orelowitz published an article in the February 2022 issue of the American Bankruptcy Institute Journal discussing beta, the measure of a company’s systematic risk, and its application to valuation. The article describes how to calculate beta and situations where accurately determining this metric may require extra attention, such as highly distressed companies, recent IPOs, private companies, and instances of extreme economic volatility....