Cost of Capital
Accurate risk assessment is vital in any financial analysis. BVR offers best-in-class tools for determining cost of capital and quantifying risk to enhance every aspect of your work – at the highest quality possible.
Please Note: As of October 31, 2018 Business Valuation Resources is no longer a distributor of the Duff & Phelps Cost of Capital Navigator, the books in the Valuation Handbook series, or the SBBI Yearbook. All current subscription renewals will be handled by Duff & Phelps.
Guides & Books
Business Valuation Case Law Yearbook, 2024 Edition
January 2024
The legal coverage and in-depth analysis from the BVR legal team including an Introduction by Jim Alerding, BVR Legal Editor delivers lessons learned to help appraisers reach better and more defensible valuation conclusions. The 2024 Yearbook illustrates how financial experts helped their side win (and lose) in the courtroom and includes 70 new cases that were added to BVLaw in 2023.
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Business Valuation Update Yearbook, 2024 Edition
January 2024
Another year has come and gone and it's time again for one of BVR's “greatest hits” publications! The Business Valuation Update Yearbook 2024 covers the previous year’s most groundbreaking and thought-provoking advancements in valuation. It captures changes in regulations and professional standards, key takeaways from professional conferences, and tactical practice-building ideas. This critical desktop reference puts you ahead of the competition with on-the-ground reporting by the BVR editorial team including an Introduction by Andy Dzamba, BVR Executive Editor and insights from notable BV experts.
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Business Valuation Update Yearbook, 2023 Edition
January 2023
It's that time of year again, BVR's “greatest hits” publication is here! The Business Valuation Update Yearbook 2023 covers the previous year’s most groundbreaking and thought-provoking advancements in valuation. It captures changes in regulations and professional standards, key takeaways from professional conferences, and tactical practice-building ideas. This critical desktop reference puts you ahead of the competition with on-the-ground reporting by the BVR editorial team including an Introduction by Andy Dzamba, BVR Executive Editor and insights from notable BV experts.
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Valuing a Business, 6th Edition
April 2022
Since the first edition was published in 1981, the profession of business appraisal has matured immensely. The IRS has come out with business valuation guidelines, and the AICPA has published their business valuation standards. While each organization’s standards or guidelines are slightly different from the others, there is unanimous agreement on the central concepts of business valuation.
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Understanding Business Valuation - 6th Edition
February 2022
In this exciting new edition of Understanding Business Valuation, Gary Trugman takes his characteristic talent for simplifying the technical and complex to even greater heights. In his easy-to-read and understand style he covers all the bases with valuation approaches, methods, and techniques. Trugman identifies critical points in his callout notes throughout the publication.
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Business Valuation Update Yearbook, 2022 Edition
January 2022
A new year means another annual “greatest hits” publication! The Business Valuation Update Yearbook 2022 covers the previous year’s most groundbreaking and thought-provoking advancements in valuation. It captures changes in regulations and professional standards, key takeaways from professional conferences, and tactical practice-building ideas. This critical desktop reference puts you ahead of the competition with on-the-ground reporting by the BVR editorial team including an Introduction by Andy Dzamba, BVR Executive Editor and insights from notable BV experts.
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Business Valuation Update Yearbook, 2021 Edition
January 2021
Always a highly-anticipated annual publication, the Business Valuation Update Yearbook 2021 covers the year’s most groundbreaking and thought-provoking advancements on valuation methodologies in the face of a global pandemic. It also captures, changes in regulations and professional standards, key takeaways from the best virtual conferences, and tactical practice-building ideas. This critical desktop reference puts you ahead of the competition with on-the-ground reporting from valuation experts, thought-leaders, and BVR’s expert editorial and legal teams.
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Business Valuation Update Yearbook, 2020 Edition
January 2020
BVR has you covered with the Business Valuation Update Yearbook 2020. This newest edition from the publishers of Business Valuation Update covers the year’s most groundbreaking and thought-provoking advancements in business valuation, and more. This critical desktop reference keeps you ahead of your peers with on-the-ground reporting from valuation experts, thought-leaders, and BVR’s editorial team.
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Business Valuation Update Yearbook, 2019 Edition
February 2019
BVR has you covered with the Business Valuation Update Yearbook 2019. This newest edition from the publishers of Business Valuation Update covers the year’s most groundbreaking and thought-provoking advancements in business valuation, and more. This critical desktop reference keeps you ahead of your peers with on-the-ground reporting from valuation experts, thought-leaders, and BVR’s editorial team.
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Business Valuation Update Yearbook, 2018 Edition
February 2018
BVR has you covered with the Business Valuation Update Yearbook 2018. This newest edition from the publishers of Business Valuation Update covers the year’s most groundbreaking and thought-provoking advancements in business valuation, and more. This critical desktop reference keeps you ahead of your peers with on-the-ground reporting from valuation experts, thought-leaders, and BVR’s editorial team.
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Business Valuation Update Yearbook, 2017 Edition
February 2017
BVR has you covered with the Business Valuation Update Yearbook 2017. This newest edition from the publishers of Business Valuation Update covers the year’s most groundbreaking and thought-provoking advancements in business valuation including IRC Sec. 2704, DLOM, cost of capital, and more. This critical desktop reference keeps you ahead of your peers with on-the-ground reporting from valuation experts, thought-leaders, and BVR’s editorial team.
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A Consensus View: Q&A Guide to Financial Valuation 2016 edition
March 2016
In A Consensus View Q&A Guide to Business Valuation, Jim Hitchner, Shannon Pratt, and Jay Fishman answer over 150 of the most important business valuation questions they’ve been asked over the years. Each year, new chapters will be added and existing chapters will be updated.
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Business Valuation Yearbook 2016
February 2016
Keep up with business valuation’s most innovative approaches and techniques, new court decisions, and regulatory and professional standards updates. BVR has you covered with the Business Valuation Update Yearbook 2016. This newest edition from the publishers of Business Valuation Update covers the year’s most groundbreaking and thought-provoking advancements
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BVR Legal and Court Case Yearbook 2016
February 2016
The BVR Legal and Court Case Yearbook 2016 is essential for business appraisers and attorneys who want to stay ahead of their peers on the most important legal issues confronting business valuation. With in-depth analysis from BVR’s legal team, the lessons learned in this book help appraisers come to better and more defensible valuation conclusions.
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Business Valuation Update Yearbook 2015
February 2015
BVR has you covered with the latest news in the business valuation profession! Get your Business Valuation Update Yearbook 2015 now to stay up to date with the most innovative approaches and techniques, leading conferences, new court decisions and changes in regulations and standards in the profession with on-the-ground reporting from valuation experts, thought-leaders and the BVR editorial team.
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BVR Legal and Court Case Yearbook 2015
February 2015
The BVR Legal and Court Case Yearbook 2015 is essential for business valuation professionals and attorneys to stay current on the most important legal issues confronting the profession. The Yearbook covers marital disputes, breach of contract actions, damages, dissenting shareholder disputes, estate and gift tax cases, federal taxation, intellectual property cases, bankruptcy litigation, and more.
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Training
Black Scholes Option Model: Global Education by iiBV (eLearning Course)
The Black Scholes Option Model was first published in 1973, but the applicability in valuation is strong to this day. Join iiBV expert Andrew Strickland as he dissects and explains the various components of the models, and how they can be utilized in your valuation.
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Excel for Valuation: Beginner to Advanced (eLearning course)
Whether you're new to the field or a veteran business valuation practitioner, there is no tool more critical than Excel. BVR's new eLearning course, "Excel for Valuation: Beginner to Advanced," will catapult your Excel knowledge and skills so you can work as efficiently as possible with spreadsheets, formulas and functions. You can customize the course to match your skill level; start with the very basics or jump right into more complex areas. The eLearning combination of video, notes, take-away templates, quizzes, and exercises ensure you will remain thoroughly engaged for the duration of the course.
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International Business Valuation Standards and Ethics (eLearning course)
Valuation is a global profession, and for many that means complying with the new 2020 International Valuation Standards and Code of Ethical Principles. This comprehensive eLearning course delivers what you need to know to demonstrate global valuation competency and understand the significant changes to the standards. See practical and relevant examples by working through an actual case study that follows all of the logical steps of a valuation engagement. Hold yourself to a higher global standard and be prepared to venture wherever your next valuation assignment takes you.
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International Cost of Capital: Global Education by iiBV (eLearning course)
The income approach is the most relied upon approach for most valuations, and determining the cost of capital for your engagement for a non-U.S. company is often difficult due to lack of local data. Utilizing commonly applied models in developing international cost of capital, such as relative volatility models or country yield spread models, is critical for success. Learn the shortcomings of each model in terms of their ability to capture the systematic and unsystematic risk in a subject company.
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Masterclass in the Valuation of Family Limited Partnerships and LLCs (eLearning course)
As professional appraisal methodology has advanced, so has the valuation of family limited partnerships (FLPs) and limited liability companies (LLCs). Adopting an analytical method for valuing FLPs and LLCs using the income and market approaches allows appraisers to more accurately and objectively determine a value that can withstand the scrutiny of IRS challenges. Experts Bruce Johnson, Jim Park, and Spencer Jefferies conduct case studies to teach the best practices for valuing noncontrolling, nonmarketable FLP and LLC interests.
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Monte Carlo: Applications, Examples and Best Practices for Valuation (eLearning course)
As complexity and uncertainty continue to increase, business valuation experts must up their game to master the challenges that accompany today's engagements. Rise to – and soar beyond – the occasion using Monte Carlo simulations, an indispensable method for advanced valuation scenarios. This eLearning course, "Monte Carlo: Applications, Examples and Best Practices for Valuation" distills the best instruction and content on the topic.
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Valuing Early Stage Companies: Global Education by iiBV (eLearning course)
Early stage companies are challenging to value. Often with undeveloped or even no revenue these companies require a unique set of tools for a business valuer. Learn the common models used to deploy valuations in this area such as the Current Value Method, Option Pricing Model, and the Probability Weighted Expected Return Method (PWERM), along with their shortcomings.
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Valuing Intangible Assets: Global Education by iiBV (eLearning course)
Every valuation professional needs to be able to identify the differences between intangible and tangible assets. The first step is to define the major categories of intangible assets and understand the common models used to determine value. Often the purpose of intangible valuation is for financial reporting contexts, including purchase price allocation. Join Jon Barton in this fundamental eLearning course that builds on core valuation concepts with in depth lectures and Excel-based case studies.
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Valuing Minority Interests: Global Education by iiBV (eLearning course)
Valuing a partial interest in a business is difficult, and when that interest is a minority ownership stake the impact to value can be significant. In this eLearning course, led by John Barton, you’ll learn methods to adjust for and quantify minority discounts. Control is a key issue, and understanding the multiple methods an appraiser can utilize is critical to a defensible valuation.
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07
/ December
2023
BV 2023, Year in Review: Top 10 List
02
/ November
2023
Valuation in Times of High Inflation
23
/ August
2023
Cost of Capital and Inflation Considerations
13
/ July
2023
Business Valuation through an ESG Lens
18
/ October
2022
Valuation Considerations in High Inflationary Environments
27
/ January
2022
Cost of Capital in Cross-Border Valuations
10
/ December
2020
Side Effect of COVID-19: Beta Changes Impacting Business Valuations
Deal & Market Data
The risk-free rate is generally a rate available on instruments considered to have virtually no possibility of default, such as U.S. Treasury obligations. Using the latest data from the Federal Reserve Board, the BVR Risk-Free Rate Lookup provides nine risk-free rates commonly used to develop a discount rate.
Butler Pinkerton Calculator - Total Risk Allocator
The Butler Pinkerton Calculator (BPC) offers empirical data for total cost of equity (TCOE) and company-specific risk premiums (CSRP) – a first for the business valuation profession.
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Cost of Capital Professional
The Cost of Capital Professional platform provides business valuators and analysts Equity Risk Premia, Size Premia, Risk Free Rates and an online calculator (with data similar to the original Ibbotson SBBI data). This state-of-the-art platform provides a simple and transparent way to estimate cost of capital.
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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.
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News & Research
Business Valuation Update
The Business Valuation Update (BVU), a monthly newsletter with searchable online access, includes new thinking from leading professionals, detailed reports from valuation conferences, analysis of new business valuation approaches, thorough analysis of “landmark” legal cases in key business valuation issues, regulatory and standards updates, and much more.
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BVLaw
Turn to the exclusive BVLaw collection, which includes case digests and court opinions for thousands of business valuation and damages cases that deal with economic damages, lost profits, estate and gift tax, divorce, shareholder repression, partnership dissolution, securities litigation, and more.
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Blog Posts
23
/ February
2024
How CCPro Enhances Your Valuation Reports
Getting accurate cost of equity and WACC estimates and CRSP size premia can be a big job. However, thanks to Cost of Capital Professional, developing your cost of equity estimates has gotten so much more streamlined. Let's take a look at some of the most beneficial features of this cost-effective and easy-to-use platform. Read more >>
25
/ May
2022
A Look at the Income Approach
The Cost of Capital Professional platform provides you with a comprehensive range of tools that enable you to compute cost of equity and WACC estimates easily and effectively allowing you to determine your cost of capital with minimal fuss. The income approach is one such way to approach these valuations. What follows is a selection from a comprehensive article on the topic written by Jim Alerding. Read more >>
08
/ February
2019
Top 10 observations on the Tax Cuts and Jobs Act (TCJA) from the perspective of business valuation professionals
BVR caught up with practitioners at the most recent AICPA Forensic & Valuation Services (FVS) Conference to collect some thought-provoking observations on how the Tax Cuts and Jobs Act (TCJA) is impacting valuations. Practitioners are still grappling with understanding the new law’s many provisions, so this list is certainly not exhaustive, and the thinking will continue to evolve. Read more >>
16
/ January
2019
2018 in review: The most important developments in the business valuation profession
The new tax law, lively debates, new guidance, a strong protest, and a simpler approach to estimating cost of capital were just some of the highlights in the business valuation profession during 2018. Read more >>
20
/ December
2018
Online global business valuation education from the iiBV, on your schedule and from any location
If you’re looking for global business valuation education—when and where you want it—check out four new e-learning courses from the International Institute of Business Valuers (iiBV) and Business Valuation Resources (BVR). Read more >>
15
/ November
2018
BVR’s Cost of Capital Professional: What the experts behind this new platform have to say
BVR is excited to announce the release of its new Cost of Capital Professional platform, a state-of-the-art resource that provides a simple and transparent way to estimate cost of capital. We recently sat down with two of the individuals involved in the development of the new platform, Dr. Michael Crain and Ronald Seigneur, for a comprehensive Q&A. Read more >>
03
/ April
2018
Should appraisers be guessing on company-specific risk?
Of all the components that make up the cost of equity (COE), the company-specific risk premium (CSRP) often has the biggest impact on your discount rate. And, while appraisers rely on hard data for all of the other inputs in the COE, the CSRP is more or less a guess—which can send your business valuation off course. Check out BVR's infographic. Read more >>
14
/ February
2018
SECBA gets sneak preview of the D&P Cost of Capital Navigator
The hardcover version of the Duff & Phelps Valuation Handbook – U.S. Guide to Cost of Capital will no longer be published—it is being replaced by the Duff & Phelps Cost of Capital Navigator, an interactive online application.
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18
/ May
2017
Private firms' cost of equity estimates may surprise you
Results of the “2017 Private Capital Markets Report" from Pepperdine University Graziadio School of Business and Management. BVR is a research sponsor in Pepperdine’s efforts in developing a private cost of capital method as a legitimate alternative to looking to the public markets. Read more >>
15
/ February
2017
Damodaran updates data-rich cost of capital spreadsheets
Professor Aswath Damodaran (New York University Stern School of Business) has released new data posts and data sets updated for 2017 related to valuation and the cost of capital, including historical stock returns, implied equity risk premiums, country risk premiums, and more. Read more >>