Country risk, the additional risk that investors bear when investing in an international company, is a critically important but often overlooked component of the cost of capital. Country-specific factors like political instability, uncertain legal regimes, and economic turmoil cause investors to require a premium for putting their capital at risk. And while few would dispute the notion that risk varies across countries, there is not universal agreement on how best to measure country risk. Indeed, incorporating country risk into the investment analysis process is as much art as science.
Join James P. Harrington and Carla Nunes, CFA as they take a deep dive into the subject of country risk. They will present their framework for cross-border valuations and explain how to properly account for country risk in a discounted cash flow valuation.
This is an archived recording of a live webinar that took place on 6 December 2016.