The market risk premium is one of the most important but elusive parameters in finance. It is also called equity premium, market premium and risk premium. The term 'market risk premium' is difficult to understand because it is used to designate three different concepts: 1) Required market risk...

Spanish Abstract: En el primer trimestre de 2009, la rentabilidad de la bolsa española fue -16% y hubo 31 empresas (entre 136) con rentabilidad positiva. En 2008, la rentabilidad de la bolsa española fue -40% y sólo hubo 3 empresas con rentabilidad positiva. Las 136 empresas destruyeron valor...

As interest rates on Government Bonds have decreased, some analysts and consultants in Europe and in the US are using what they call “Normalized Risk-Free rate”.We show several inconsistencies and errors in the use of “Normalized Risk-Free rate”. Section 5 is a short case that may be...

This paper contains the statistics of a survey about the Risk-Free Rate (RF) and the Market Risk Premium (MRP) used in 2023 for 80 countries. We got answers for 102 countries, but we only report the results for 80 countries with more than 6 answers.The paper also contains the links to previous...

We compute the Shareholder Value Creation of BBVA. The market cap of BBVA increased between December 1991 and December 2005 in 47,386 million euros. The shareholder value creation during this period was 15,617 million euros. The average shareholder return of BBVA in this 14 years was 19.8%,...

This paper contains a collection and classification of 96 errors seen in company valuations performed by financial analysts, investment banks and financial consultants. The author had access to most of the valuations referred to in this paper in his capacity as a consultant in company...

2005 was a very good year for the shareholders of the companies in the Euro Stoxx 50. The shareholder value creation of these 50 companies was 292.9 billion. The companies that created more value for their shareholders were Total ( 30 billion), Sanofi-Synthelabo ( 23.2 billion) and Eni ( 20.7...

This paper contains a collection and classification of 96 errors seen in company valuations performed by financial analysts, investment banks and financial consultants. The author had access to most of the valuations referred to in this paper in his capacity as a consultant in company...

During 2004, 64% of the companies included in the Samp;P 500 created value, while in 2003 87% of these companies did it. The market value of the 500 companies was $11.2 trillion in 2004 and $10.1 trillion in 2003. The top shareholder value creators in 2004 were Exxon, General Electric, Ebay,...

During 2003, 87% of the companies included in the Samp;P 500 created value, while in 2002 just 17% of these companies did it. The market value of the 500 companies was $10.1 trillion in 2003 and $7.9 trillion in 2002. The top shareholder value creators in 2003 were Intel, Cisco, Citigroup,...