Securities Market Line

Securities Market Line gives enlisted and non-enlisted companies valuable perspective how their company fit into general stcok market and investors’ point of view in their business area.

We  are able to provide carefully analyzed, selected and tested betas and growth rates from large amount of companies costefficiently with our own practical estimation software. We provide a clear, tangible presentation about the risk and return situation in your business area.

Goals of Project

  • Establish the Securities Market Line (SML) for the customer based on a named peer group of companies
  • The SML information can then be used to determine benchmark performance requirements for the businesses of the customer
  • Customer lists a peer group of companies and a peer index
  • Index may be used to identify other reference companies with high betas but not listed by the customer, as peer group companies may have betas too close to each other

Results

  • Reference Company Securities Data Shown in Char
  • Stylized Facts Range of Securities Market Line
  • Securities Market Line for the customer
  • Conclusions:
    • Outliers are analysed, and results are reported with and without these outliers
    • The behaviour of the Securities Market Line for the customer are analysed and concluded in the estimation period and business field
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