Cost of capital
Analysis of the ever-changing price of money
Stock prices rose last fortnight. The S&P 500 index of big American companies climbed 1% to 5,537. The index offers an 8.7% annual expected return at the current price.
According to ππππ’πππ's discounted cash flow model, the S&P 500 is worth about $4,807 per share. This model, which relies on analysts' consensus estimates for each company in the inβ¦