Equity risk premiums adjusted for country risk, Aswath Damodaran notes

Equity risk premiums adjusted for country risk, Aswath Damodaran notes
Mid-year global equity risk update

Aswath Damodaran, Kerschner Family Chair in Finance Education; Professor of Finance at New York University Stern School of Business, completed his mid-year update of equity risk premiums by country, starting from a mature market premium base of 4.17 percent and adjusting for variations in default risk and stock risk across countries.

The update provides insight into the relative equity risk investors may face in different markets worldwide.

Damodaran has recently commented on capital trends in the corporate sector. He said he expects company capital expenditures and R&D spending in 2025 to be exceptionally high due to AI ambitions. The projection comes as investors assess evolving risks and returns in global markets.

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