Duff & Phelps and Wiley Announce the Publication of the 2015 Valuation Handbook: Guide to Cost of Capital

The new book provides key 2014 data used in calculating cost of capital

Duff & Phelps, the premier global valuation and corporate finance advisor, today announced publication of the 2015 Valuation Handbook: Guide to Cost of Capital.A mainstay of the financial industry, this annually-updated guide provides the key data that valuation practitioners, corporate finance professionals and advisors rely on to estimate cost of capital for mergers and acquisitions, financial reporting, capital budgeting and related strategic investments.

Determining the appropriate cost of capital, or discount rate, can be one of the most challenging aspects of any valuation analysis, particularly in volatile markets or during periods of economic uncertainty. “The inputs required for defensible and accurate cost of capital estimates continue to evolve in parallel with an uneven global economic recovery, currency fluctuations, and volatility in key industries,” said Roger Grabowski, Duff & Phelps Managing Director and co-author of the 2015 Valuation Handbook. “We are pleased to continue to provide corporate finance professionals and valuation practitioners with a comprehensive, practical and definitive resource to develop cost of capital estimates, and we are enthusiastic to be partnering with John Wiley & Sons to provide world-wide distribution of the Valuation Handbook series,” added Grabowski.

The 2015 Valuation Handbook includes real-world examples to illustrate common scenarios and clarify best practices, as well as graphs to highlight pertinent information at a glance. The Valuation Handbook provides equity risk premium estimates and size premia developed from two sources, including premia for 25 size-ranked portfolios based on eight alternative measures of company size. The rate of return figures are further adjusted for factors that skew other equity risk premiums studies.

The Valuation Handbook, and the companion online Risk Premium Toolkit and online Cost of Capital Analyzer, are designed to serve the needs of:

  • Corporate finance officers for pricing or evaluating mergers and acquisitions (M&A), raising private or public equity, property taxation and stakeholder disputes;
  • Corporate officers for the evaluation of investments for capital budgeting decisions;
  • Investment bankers for pricing public offerings, M&A, and private equity financing;
  • CPAs who deal with either valuation for financial reporting or other client valuation issues; and
  • Judges and attorneys who deal with valuation in M&A, shareholder and partner disputes, damage cases, solvency cases, bankruptcy reorganizations, property taxes, rate setting, transfer pricing and financial reporting.

The new edition also includes timely updates such as:

  • An expansion on the discussion of the risk-free rate and the equity risk premium with analyses of the effects of flight to quality and massive central bank monetary interventions on these two important cost of capital inputs.
  • A table of debt betas by credit grade for use in unlevering and levering beta.
  • A discussion on real estate and associated rates of return to examine volatility characteristics of U.S. real estate compared to other U.S. asset classes, providing a table of data that can be used as inputs in performing valuations of individual real property investments.
  • A chapter addressing “Answers to Commonly Asked Questions” in order to share some of the many thoughtful questions from valuation analysts.
  • The 2015 Valuation Handbook includes the Duff & Phelps long-standing Risk Premium Report along with all of the critical year-end data that was previously available in the now discontinued Ibbotson® Stock, Bonds, Bills and Inflation (SBBI®) Valuation Yearbook.

In June 2015 two additional data resources in the Valuation Handbook series will be available: the 2015 Valuation Handbook-Industry Cost of Capital and the 2015 International Handbook – Guide to Cost of Capital. The Valuation Handbook-Industry Cost of Capital includes optional quarterly updates. The International Valuation Handbook includes an optional semi-annual update.

For more information about Duff& Phelps valuation data resources published by Wiley, please click here.

On Tuesday, April 7, 2015 at 5:00 p.m. BST / 12:00 p.m. EDT Duff & Phelps will host a webcast, Calculating Cost of Capital-Matching Risk and Return 2015 Update. Click here for more information or to register for the webinar. To learn more about Duff & Phelps’ valuation expertise, click here.

About Duff & Phelps
Duff & Phelps is the premier global valuation and corporate finance advisor with expertise in complex valuation, dispute and legal management consulting, M&A, restructuring, and governance and regulatory consulting. The firm’s more than 2,000 employees serve a diverse range of clients from offices around the world. For more information, visit www.duffandphelps.com.

M&A advisory and capital raising services in the United States are provided by Duff & Phelps Securities, LLC. Member FINRA/SIPC. Pagemill Partners is a Division of Duff & Phelps Securities, LLC. M&A advisory and capital raising services in the United Kingdom and Germany are provided by Duff & Phelps Securities Ltd., which is authorized and regulated by the Financial Conduct Authority.

About Wiley
Wiley is a global provider of knowledge and knowledge-enabled services that improve outcomes in areas of research, professional practice, and education. Through the Research segment, the Company provides digital and print scientific, technical, medical, and scholarly journals, reference works, books, database services, and advertising. The Professional Development segment provides digital and print books, online assessment and training services, and test prep and certification. In Education, Wiley provides education solutions including online program management services for higher education institutions and course management tools for instructors and students, as well as print and digital content.

Media Contact

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