Interest Rates and Company Valuation

Fernandez, Pablo

doi:10.2139/ssrn.2215926

Download This Paper

Open PDF in Browser

Add Paper to My Library

Interest Rates and Company Valuation

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

See all articles by Pablo Fernandez

Pablo Fernandez

IESE Business School

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: 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