CAPM is the standard methodology used in financial academia to calculate the cost of equity.
The S&P 500 has a fwd p/e of about 23. This would imply a ~4.5% earning yield.
The yield on a 10yr is >4%
Make it make sense?
The S&P 500 has a fwd p/e of about 23. This would imply a ~4.5% earning yield.
The yield on a 10yr is >4%
Make it make sense?