Current BUM and CAPM cost of capital rates now available from BVR’s Cost of Capital Pro

BVWire–UKIssue #11-2
February 18, 2020

cost of capital
cost of capital, discount rate, equity risk premium, private company valuation, risk analysis, cost of equity

Year-end 2019 data are now available in BVR’s Cost of Capital Professional. The new update provides business valuers with current cost of equity, cost of debt, and WACC numbers, including:

  • risk-free rates;
  • industry risk premia;
  • equity risk premia;
  • betas for CAPM calculations; and
  • size premia.

CCPro gives analysts the flexibility to choose the start year for historical return data based on which business cycle best offers a reasonable basis to make estimates of expected future returns. In addition, CCPro will be adding a small and micro-stock size premia split during the 2nd quarter to provide better support for risk analyses when valuing very small businesses.

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