CAPM Model | Cost of Equity Calculation with Example

In this video, I explain the Capital Asset Pricing Model (CAPM) in a clear and simple way. The CAPM model is one of the most widely used methods in finance to calculate the Cost of Equity.

We cover:

What is CAPM and why it is important in valuation

The CAPM formula and its components (Risk-Free Rate, Beta, Market Risk Premium)

How to interpret Beta and market risk

Practical example to understand how CAPM works in real-world analysis

By the end of this video, you will be able to:

Understand the CAPM formula step by step

Apply CAPM to calculate cost of equity for any company

See how investors and analysts use CAPM in equity research and valuation

This video is perfect for finance students, investors, and professionals who want to strengthen their understanding of valuation models.