Risk Premium Report Overview
A premium resource for determining discount rates, the Risk Premium Report provides equity risk premiums for companies sized by eight different criteria:
- Market capitalization
- Book value
- Net income
- Market Value of Invested Capital
- Total assets
- EBITDA
- Sales
- Number of employees
The underlying data for the Risk Premium Report is drawn from both the CSRP and Compustat databases, covering 47 years (1963 – 2010) years of financial reports from companies listed on the New York Stock Exchange, the NASDAQ and the AMEX.
The Risk Premium Report (originally the Standard & Poor's Corporate Value Consulting Equity Risk Premium Report) is produced annually by Duff and Phelps LLC, a leading provider of independent financial advisory and investment banking services. The Report is authored by Roger Grabowski, a managing director of Duff & Phelps.
In selecting the data for their analysis, the authors have segregated high risk companies into a separate “portfolio” and de-selected companies de-listed from their exchanges and other companies whose data would tend to skew the risk premium curve (companies with 5 year negative EBITDA, companies with less than 5 years reported data, etc.). The remaining companies are then divided into 25 “portfolios” based on size, using eight alternate measures for size.
| $499.00 |
Calculator Option 1 This is a one year subscription to access both the Risk Premium Report PDF’s and the Risk Premium Calculator (unlimited access). You will have access to all the PDF’s from 1996 to the present year and the calculator provides the data from those years as well. The PDF’s and calculator will allow you to estimate the cost of equity capital for any valuation date from January 1, 1996 to the present. |
| $275.00 |
Calculator Option 2 Includes the current Duff and Phelps Risk Premium Report PDF and one (1) access to the Duff & Phelps Risk Premium Calculator. |
Risk Premium Calculator Overview
The web-based Risk Premium Calculator (the same sold by BV Resources) 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 Risk Premium Calculator 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 in Word, including CAPM, Buildup and unlevered COE, which includes Excel output of the values and calculations
Works with these software products