
doi: 10.3233/rda-202062
The article addresses theoretical issues, applied instruments and practical implementation of the behavioral valuation methodology. It formulates the range of specific correction parameters for beta coefficient, used in calculating CAPM-based discount rate in order to find behavioral discount rate and calculate stock’s market value, with regard to behavioral factors and risks associated with them. The hypothesis that emotions influence the deviation of the beta coefficient used by irrational investors in the market from the beta coefficient used in the CAPM model was tested and confirmed. The range of deviations of the beta coefficient used by irrational investors in the market from the beta coefficient used in the CAPM model is presented. It can be used for specific practical applications in calculating the market value of shares. The results of the studies described in the article are used in valuation, in corporate finance, in the stock market. It is especially important to use the tools of behavioral valuation in conditions of instability and crisis, a change in the market paradigm, market shifts, changes in the parameters of profitability and volatility of financial instruments. The use of behavioral valuation tools complements and expands the classic tools of traditional finance, improves the quality of value management solutions in modern markets.
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