hi everyone!
Thought of asking for your advice. My team asked me to create a simulation on the effect of the COVID epidemic on the equity portfolio of our company (for your info, we’ve invested in a number of publicly listed local currency stocks in the Asia Pacific Region).
Given this, do you have any suggestion on how i can implement the simulation? let me know if there’s any item that i need to take note of. Many thanks.
Have you valuated those equities using DCF models? If you so, you must re-model the income drivers for every company. Depending on the location, bussines, industry, barriers to entry, tech advantages, innovation, etc each company has, you may burn present and future revenue. Also, model de cost structures too. You may run a new portfolio value doing this.
Also, the correlations between stocks is important. Chained events will make burdens more strong.