Risk Premium Data
The new 2017 Valuation Handbook—Guide to Cost of Capital contains the data previously available in Duff & Phelps Risk Premium Report (no longer published as a stand-alone publication).
The Valuation Handbook—Guide to Cost of Capital provides equity risk premiums for companies sized by eight different criteria:
Market Value of Invested Capital
Number of employees
Decile Data (a must if you own NACVA/ValuSource software)
The electronic Decile Data (data formerly offered in the SBBI Valuation Edition.) The Declie data can be downloaded to Excel and will download directly in ValuSource valuation software, including ValuSource Pro, Business Valuation Manager™ Pro and Express Business Valuation.
Cost of Capital Analyzer
The 2017 version of the web-based Cost of Capital Analyzer will also include all of the data available in the Risk Premium Report except the High Financial Risk data.
The web-based Cost of Capital Analyzer is both easy to use and will save the appraiser time in calculating cost of equity (COE) for the subject company of a valuation. Based on the subject company’s size and risk characteristics, the Cost of Capital Analyzer will:
Automatically estimate levered and unlevered cost of equity
Automatically makes an Equity Risk Premium (ERP) adjustment to account for differences between ERP as of valuation date and market risk premium used to calculate the risk premiums published in the Risk Premium Report
Automatically generates an Executive Summary of COE estimates, including CAPM, Buildup and unlevered COE, which includes Excel output of the values and calculations
The Cost of Capital Analyzer can be used by Excel users and will download directly in ValuSource valuation software, including ValuSource Pro, Business Valuation Manager Pro and Express Business Valuation.