Year-end 2020 data, including equity risk premia, CRSP decile size premia, and industry betas/IRPs, are now available in BVR’s Cost of Capital Professional (CoCPro) platform. The platform is a simple, transparent, and cost-effective service for estimating the cost of capital and is designed to bring more professional judgment and common sense back into the process, which has become too much of a complex ‘black box’ of applied mathematics.
CoCPro is directed by Professor Mike Crain, and it benefits from research conducted by valuation experts as disparate as Professor Aswath Damodaran (New York University Stern School of Business) and Ascanio Salvideo (Salvideo and Associates). In those cases where a valuation engagement allows for an income approach (DCF analyses are becoming more widely accepted in UK courts), CoCPro supports the buildup method and CAPM calculations for any valuation date. It also gives you the flexibility to choose the start year for historical return data based on what segment of history you believe best offers a reasonable basis to make estimates of expected future returns. For a personalized demo of the platform, click here.
Damodaran continues to offer business valuers a treasure trove of analyses via his annual posting of data updates. He covers risk-free rates, equity risk premiums, corporate default spreads, corporate tax rates, country risk premiums, and other data—all of which is free. He does a series of posts on his blog based on these new data. The first post takes a look back at 2020 and explains the background of his annual data analysis.
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