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What do "Premium" and "Commodity" for Positioning mean under the Qualitative Assessment tab?
What do "Premium" and "Commodity" for Positioning mean under the Qualitative Assessment tab?

Qualitative, Subjective Risk Assessment, Positioning, Premium, Commodity Definition, Products/ Services Perception, Factor, Variable

Updated over 2 years ago

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.

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