On the Qualitative Assessment, you can choose the position of the company you're valuing as an input.
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Premium or Commodity are used as a bit of a catch-all term as it can mean different things in different industries.
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The idea is that if a company's products/services are perceived as being premium, or higher quality, over its competitors', it will reduce the company's riskiness and thus lead to a lower cost of equity premium.
Qualitative, Subjective Risk Assessment, Positioning, Premium, Commodity Definition, Products/ Services Perception, Factor, Variable
Updated over 2 years ago