Interest Rates and Company Valuation

9 Pages Posted: 12 Feb 2013 Last revised: 10 May 2023

Date Written: May 5, 2023

Abstract

Interest rates have a considerable bearing on share prices. Any investor’s experience shows that, in general, when interest rates fall significantly, share prices rise, and vice-versa. We begin by observing the evolution of interest rates in the last 22 years in the United States. We also look at changes in the yield curve.

Keywords: Value, Interest rates, Yield curve, Treasuries

JEL Classification: G12, G31, M21

Suggested Citation

Fernandez, Pablo, Interest Rates and Company Valuation (May 5, 2023). Available at SSRN: https://ssrn.com/abstract=2215926 or http://dx.doi.org/10.2139/ssrn.2215926

Pablo Fernandez (Contact Author)

IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain
+34 91 357 0809 (Phone)
+34 91 357 2913 (Fax)

HOME PAGE: http://web.iese.edu/PabloFernandez/

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