Aswath Damodaran's new take on equity risk premium may have limitations
Published on 24/03/2026 11:39 AM
Aswath Damodaran's new take on equity risk premium may have limitationsDamodaran's new framework is indisputably superior to the conventional historical-average approach across all types of businesses, but it may not be a good formula for all stocks.By Vijay Kumar Gaba March 24, 2026, 11:39:21 AM IST (Updated)Between 2021 and 2025, the Nifty50 has yielded a decent compounded annual growth rate (CAGR) of 13.3%. Returns have been much better in the broader markets (CNX500), with a 15.7% CAGR.Continue Reading with CNBC-TV18 Access MembershipPriority Access and Networking: CNBC-TV18's flagship events Interaction with CNBC-TV18's journalists Webinars & LIVE Q&As with India Inc. Leaders Exclusive CNBC-TV18 studio & newsroom tours Premium business insights, expert opinions & analysis Curated lifestyle privileges & offers