Inclusion of Betas in CCPro Platform Puts the Spotlight on the IRP

Business Valuation UpdateVol. 25 No. 7
July 2019
cost of capital
fair market value (FMV), debt valuation

Summary

Two sources of industry betas are now included in BVR’s Cost of Capital Professional (CCPro) to help in estimating the industry risk premium (IRP) component of the buildup method for developing the cost of capital for a private company. For appraisers that choose to use an IRP, care must be taken and there are some important factors to consider.