Aviation Industry Enterprise Market Risk Premium Evaluation Model

Аuthors

Yanchishin A. M.

Moscow Aviation Institute (National Research University), 4, Volokolamskoe shosse, Moscow, А-80, GSP-3, 125993, Russia

Abstract

World financial crisis showed the inefficiency of risk evaluation models being used by most of financial and industrial sector enterprises which decreased the value of Weighted Average Cost of Capital and increased the value of the assets. . Methodology being described in this helps to evaluate market risk premiums for aviation industry enterprise more precisely by modifying of Capital Asset Pricing Model methodology. Calculation based on fundamental factors helps to avoid average value mistakes, regression analysis valuating connection between country economy growth and certain type aviation industry enterprise evaluates the risks of certain market segments together with different risk levels of mature and emerging markets. 

Keywords:

Risk, Rate of Return, Beta coefficient, aviation industry, Capital, Financial leverage