Search:

Cost of Capital Resource Center

Any financial analyst who performs discounted cash flow analysis knows that the "denominator"–risk assessment–is as critical as the estimation of future benefit streams. That's why all the best business appraisers turn to BVR's Cost of Capital Resource Center. BVR's philosophy with the Cost of Capital Resource Center is to provide the latest and most up-to-date valuation data and analysis possible to financial professionals. As such, we are committed to continually furthering and adding to the analysis available, and to providing you with useful features.  


Tools

 

  • Valuation Handbook — Risk Premium Toolkit
    Includes Valuation Handbook — Guide to Cost of Capital, three quarterly dataset updates delivered via PDF, plus historical Duff & Phelps Risk Premium Reports

    Designed by Roger Grabowski and James Harrington, the Risk Premium Toolkit (formerly the Risk Premium Calculator)  is a web-based model that offers defensible cost of capital measures, particularly for small target companies. Users can perform a calculation based on Risk Premium Report data or CRSP Deciles data (CRSP is The Center for Research in Security Prices.)  Users can enter up to 18 inputs when using the Risk Premium data and up to 7 inputs when using the CRSP Deciles data.  Each calculation  instantly delivers a fully customizable “Executive Summary” in Microsoft Word format that includes sourcing, key inputs, and a concluded range of cost of equity capital estimates using both the buildup and CAPM methods. In addition, a detailed record of all inputs, outputs, and calculations is exported to a “Support and Detail” Microsoft Excel workbook.  Use of the Toolkit ensures accuracy and prevents spreadsheet errors. 

    The Toolkit includes all of the data available in both the former SBBI Valuation Yearbook and the Risk Premium Report. Toolkit subscribers also receive a print copy of the 2016 Valuation Handbook — Guide to Cost of Capital with three quarterly dataset updates delivered via PDF.

 

  • The Implied Private Company Pricing Line Tool (IPCPL)
    A contentious subject in business valuation is the cost of capital estimation of a small privately held business by using data from publicly traded equity securities. Using the traditional approach, different appraisers analyzing the same firm using the same data sources can easily arrive at vastly different cost of capital estimates. The Implied Private Company Pricing Line (IPCPL) approach is designed to eliminate the inherent problems in comparing public and private data and to add another approach in estimating the cost of capital for a privately held business.

Publications

2016 Valuation Handbook—Guide to Cost of Capital

The Valuation Handbook, authored by Duff & Phelps, replaces the discontinued SBBI Valuation Edition and the Duff & Phelps Risk Premium Report. The Valuation Handbook includes both the ERP data available in the Duff & Phelps Risk Premium Report and picks up where the old SBBI Valuation Edition left off, with new features, tools, and analysis. It includes long-, intermediate-, and short-term equity risk premia; mid-, low-, and micro-cap size premia; the frequently cited table "Key Variables in Estimating the Cost of Capital," industry risk premia, and more. The Handbook is now available with optional PDF quarterly updates (for an additional fee). The Industry Risk Premia Quarterly Updates subscription includes 3 quarterly dataset updates (data through March; data through June; data through September) to supplement the IRPs in the 2016 Valuation Handbook (through December). The updates for approximately 250 U.S. industries include three industry risk premiums that are used in the “build-up” method of estimating cost of equity capital.

Learn More | Order Book Today: $285 | Order Book & Quarterly PDF Dataset Updates: $460 | Click here to purchase 2015 edition

2016 International Valuation Handbook—Industry Cost of Capital (available June 2016)

The 2016 International Valuation Handbook – Industry Cost of Capital provides industry-level cost of capital estimates (cost of equity, cost of debt, and weighted average cost of capital, or WACC), plus detailed industry-level statistics for sales, market capitalization, capital structure, various levered and unlevered beta estimates (e.g., ordinary-least squares (OLS) beta, sum beta, peer group beta, downside beta, etc.), valuation (trading) multiples, financial and profitability ratios, equity returns, aggregate forward-looking earnings-per-share (EPS) growth rates, and more.

Learn More | Pre-order Book Today: $485 | Pre-order Book & Semi-Annual PDF Update: $835 | Click here to purchase 2015 edition

2016 International Valuation Handbook — Guide to Cost of Capital (available June 2016)

The 2016 International Valuation Handbook - Guide to Cost of Capital, authored by Duff & Phelps, is a must-have publication that includes data through March 2016 and builds on the same rigorous country-level cost of capital analysis previously published in the Morningstar/Ibbotson “international” reports. It includes country-level country risk premia (CRPs) and country-level equity risk premia (ERPs) which can be used to estimate country-level cost of equity capital globally, from the perspective of investors based in up to 56 different countries. One optional semi-annual update is available for an additional fee.

Learn More | Pre-order Book Today: $485 | Pre-order Book & Semi-Annual PDF Update: $835 | Click here to purchase 2015 edition

2016 Valuation Handbook—Industry Cost of Capital (available June 2016)

The 2016 Valuation Handbook - Industry Cost of Capital provides the same rigorous industry-level analysis previously published in the green-cover Morningstar/Ibbotson Cost of Capital Yearbook. The Handbook includes additional methods to calculate cost of equity capital and extra statistics, which enables a more robust benchmarking analysis when developing industry cost of capital estimates. It also includes cost of capital estimates (equity capital, debt capital, and WACC) for 180 U.S. industries, plus a host of detailed statistics that can be used for benchmarking purposes.

Learn More | Pre-order Book Today: $485 | Pre-order Book & Quarterly PDF Updates: $835 | Click here to purchase 2015 edition

Cost of Capital: Applications and Examples PLUS Website, Fifth Edition

Completely revised for this highly anticipated fifth edition, Cost of Capital contains expanded materials on estimating the basic building blocks of the cost of equity capital, the risk-free rate, and equity risk premium. There is also discussion of the volatility created by the financial crisis in 2008, the subsequent recession and uncertain recovery, and how those events have fundamentally changed how we need to interpret the inputs to the models we use to develop these estimates. This updated edition provides readers with exclusive access to a companion website filled with supplementary materials, allowing you to continue to learn in a hands-on fashion long after closing the book.

Learn More | Oder Book Today: $190

 

Cost of Capital in Litigation: Applications and Examples

Cost of Capital in Litigation addresses cost of capital issues in litigation and discusses major decisions, highlighting how to avoid errors that have often been made by experts. The book helps the attorney and valuation expert understand the decisions within the context of the theory of cost of capital and includes a chapter on cross-examining experts on cost of capital issues. Throughout, there are citation to relevant material and cross-reference to Cost of Capital: Applications and Examples, Fourth Edition.

Learn More | Order Book Today: $95.00

Articles from Business Valuation Update (BVU)
Check out these articles on cost of capital, published in the BVU. Each article is available for single purchase, or through a subscription to the BVU.

Training Programs

Attend upcoming cost of capital-related webinars as part of BVR's ongoing Training Calendar. Webinar attendees receive all presentation materials, related ancillary reading materials, and a chance to interact with the presenter. CPE credits are also available.

Free Webinars

Free Webinars

BVR's free videos are highlights, excerpts, and complete presentations from BVR's webinars and live events.

Free Cost of Capital videos are available on the Free Resources tab of this page.

Training Packs

Training Packs

Archives of all past cost of capital-related webinars are available for purchase via BVR's Training Packs. Each Training Pack includes the recording, transcript, and all reading and presentation materials from the program.

Click here to view all Cost of Capital Training Packs

Cover Image Date Aired Title & Information
September 15, 2015

Forecasting Cost of Capital in Healthcare Valuations


Featuring: Carol Carden and Robert Mundy
Run Time: 1h 39m 28s

March 17, 2015

Advanced Workshop on Cost of Capital


Featuring: Roger Grabowski
Run Time: 3h 47m 33s

February 26, 2015

Industry Risk Premiums: How Do We Get There?


Featuring: R. James Alerding
Run Time: 1h 44m 35s

January 13, 2015

How Courts View Cost of Capital in Appraisal and Fairness Cases


Featuring: Gilbert Matthews
Run Time: 1h 35m 41s

October 9, 2014

International Cost of Capital: Practical Applications


Featuring: Nancy Czaplinski and Linda Sweet
Run Time: 1h 42m 23s

May 1, 2014

Cost of Capital: An On-Demand Course from the American Society of Appraisers


Featuring: Roger Grabowski
Run Time: 7h 5m 0s

March 5, 2014

Utilizing the Implied Private Company Pricing Model: The Cost of Capital Wizard


Featuring: Robert Dohmeyer, Peter Butler, and Rod Burkert
Run Time: 1h 45m 58s

August 8, 2013

Advanced Workshop on Cost of Capital


Featuring: Kevin Yeanoplos and Ronald Seigneur
Run Time: 4h 1m 41s

July 25, 2013

Equity Risk Premiums: Looking Back, Looking Forward


Featuring: Aswath Damodaran
Run Time: 1h 39m 47s

April 30, 2013

Challenges in Estimating Cost of Capital in Healthcare


Featuring: Carol Carden and G. Don Barbo
Run Time: 1h 50m 53s

Click here to view all Cost of Capital Training Packs

Free Webinars

Free Webinars

BVR's free videos are highlights, excerpts, and complete presentations from BVR's webinars and live events.

Click here to view all of BVR's free resources

Cover Image Date Aired Title & Information
July 22, 2015

Benchmarking and Supporting International Cost of Capital Estimates with the New 2015 International Valuation Handbook


Speakers: James Harrington and Carla Nunes
Run Time: 1h 51m 23s
June 26, 2015

Using the Industry Cost of Capital Handbook to Provide Better, Defensible Cost of Capital Estimates


Speaker: James Harrington
Run Time: 1h 57m 0s
May 29, 2014

The Duff & Phelps Risk Premium Calculator: Utilizing New Data & Features for 2014


Speaker: James Harrington
Run Time: 1h 12m 15s
February 20, 2014

Valuation Handbook - Guide to Cost of Capital and the Risk Premium Calculator


Speaker: Roger Grabowski
Run Time: 1h 0m 19s
November 7, 2013

The Implied Private Company Pricing Line


Speakers: Robert Dohmeyer and Rod Burkert
Run Time: 1h 57m 4s
March 13, 2012

Introducing the 2012 Duff & Phelps Risk Premium Report & Calculator


Speaker: James Harrington
Run Time: 1h 52m 20s
March 3, 2011

The Duff & Phelps Risk Premium Report 2011


Speaker: Roger Grabwoski
Run Time: 58m 22s
February 18, 2011

Introducing the Duff & Phelps Risk Premium Calculator


Speaker: James Harrington
Run Time: 1h 20m 41s
February 18, 2010

Using the 2010 Duff & Phelps Report: Learn from the Master


Speaker: Roger Grabwoski
Run Time: 2h 1m 51s
August 28, 2009

Meet the Butler Pinkerton Calculator


Speakers: Keith Pinkerton and Peter Butler
Run Time: 1h 2m 0s

Advisory Board

BVR is proud to include the following leading experts in the field of business valuation on its Cost of Capital Center Advisory Board.

  • David Foster, BVR, Chair
  • Ted Israel, Eckhoff & Company
  • Ashok Abbott, Business Valuation, LLC
  • Jules Kamin, ValuEconomics, Inc.
  • Jeff Tarbell, Houlihan Lokey
  • Ron Seigneur, Seigneur Gustafson
  • Kevin Yeanopolos, Brueggeman and Johnson Yeanoplos

Join the Discussion

Keep the discussion going on our BVR LinkedIn group or Twitter. Interact with your peers and colleagues in real-time!

 

Connect With Us On LinkedInJoin our LinkedIn Group and start a discussion

 

Connect with us on Twitter

For more information, please email info@bvresources.com or call (503) 291-7963.



Copyright © 2016 Business Valuation Resources, LLC. All rights reserved.
1000 SW Broadway, Suite 1200
Portland, OR 97205
(503) 291-7963

« Top