Cost of Capital Blog
/-/media/cost-of-capital/banners/desktop/blog.jpg

Cost of Capital Resource Center

U.S. ERP Recommendations  |  Cost of Capital Products  |  Webcasts and Videos  |  Insights

From valuing individual securities or capital projects to evaluating M&A, estimating the cost of capital is one of the most important decisions that corporate finance professionals make. Duff & Phelps is the leading global independent valuation services firm and a trusted expert on estimating the cost of capital. For over 20 years, our professionals have published books, created studies, provided recommendations and built tools to help businesses and valuation professionals estimate the cost of capital.

Duff & Phelps regularly hosts events and provides insights on current topics impacting cost of capital assumptions and demos of new products. Our thought leaders aim to help clients when estimating cost of capital. Explore their expert analysis and opinions on latest trends.

U.S. Equity Risk Premium Recommendations

Duff & Phelps regularly reviews fluctuations in the global economic and financial market conditions. These reviews warrant a periodic reassessment of the equity risk premium (ERP) and the accompanying risk-free rate and key inputs used to calculate the cost of equity capital in the context of the Capital Asset Pricing Model (CAPM) and other models used to develop discount rates.

Duff & Phelps U.S. Normalized Risk-Free Rate Lowered from 3.0% to 2.5%, Effective June 30, 2020

View historical equity risk premium recommendations

Cost of Capital in the Current Environment

Learn more about the financial market and economic indicators taken into consideration when arriving the Duff & Phelps recommended U.S. Equity Risk Premium and accompanying Normalized Risk-free Rate in the video provided on the left. The complimentary infographic tracks the impact of COVID-19 on some of these risk indicators.

Click Here to View Infographic

Easily Estimate the Cost of Capital

Cost of Capital Navigator

The Duff & Phelps Cost of Capital Navigator is an online platform that guides you through the process of estimating the cost of capital, a key component of any valuation analysis. You can subscribe to any or all four cost of capital modules, each offering three annual subscription levels–Basic, Pro and Enterprise. Additional products offered by Duff & Phelps include the annual Stocks, Bonds, Bills and Inflation® (SBBI®) Yearbook which provides historical U.S. capital markets data.

Cost of Capital Products

U.S. Cost of Capital Module

Provides size premia, risk premia, equity risk premia, risk-free rates, betas and industry risk premia that can be used to estimate U.S. cost of capital.

U.S. Industry Benchmarking Module

Provides U.S. industry-level inputs needed to estimate cost of capital and industry-level benchmarks that can be used to augment and support custom analyses.

International Cost of Capital Module

Provides country risk premia, relative volatility factors, equity risk premia and international industry betas that can be used to estimate cost of capital globally.

2019 Valuation Handbook – International Industry Cost of Capital

It provides global industry-level cost of capital estimate and detailed industry-level statistics for sales, market capitalization and more.

Stocks, Bonds, Bills, and Inflation (SBBI®) Yearbook

This annual book has been the definitive annual resource for historical U.S. capital markets performance data for over 30 years.

Webcasts and Videos

Webcast Replay

Coronavirus – Cost of Capital Considerations in the Current Environment

Webcast Replay
Webcast Replay

Introducing Cost of Capital Navigator - International Cost of Capital Module

Webcast Replay
Webcast Replay

International Cost of Capital – Quantifying Country Risk Premia

Webcast Replay
Webcast Replay

Introducing Cost of Capital Navigator – U.S. Industry Benchmarking Module

Webcast Replay
Webcast Replay

Enhancing Cost of Capital Estimates with Industry Benchmarks

Webcast Replay

Insights

News

Carla Nunes Participated in International Institute of Business Valuers Webinar

News
News

James Harrington and Carla Nunes Published in CBV Institute’s Journal of Business Valuation Annual Publication

News
Valuation

Duff & Phelps 2020 SBBI® Yearbook

Valuation
News

Carla Nunes in International Institute of Business Valuers Education Committee

News
Cost of Capital

Roger Grabowski Shares Takeaways From His Presentation at OIV Conference in Milan

Cost of Capital

Contact Us

Other Areas We Can Help

Valuation Services

Valuation Services

Objective valuations for financial reporting, tax and management planning purposes.

Valuation Services
Corporate Finance

M&A Advisory

Middle-market M&A advisory differentiated by industry expertise and superior deal execution.

M&A Advisory
Transfer Pricing

Alternative Asset Advisory

Provides an array of consulting services to alternative investment managers and investors.

Alternative Asset Advisory