BVU Cost of Capital Center adds more Pepperdine info

BVWireIssue #261-4
June 26, 2024

cost of capital
cost of capital, discount rate, private company valuation, risk analysis, risk-free rate, cost of equity, equity risk premium (ERP)

Starting with the August issue of Business Valuation Update, information on rates used in practice for company-specific risk, industry risk premia, and the size premium will be included in the monthly Cost of Capital Center. Also included from the report will be risk-free rates, ERPs, and the LT terminal growth rate practitioners use. This information is from the annual “Private Capital Markets Report” from Pepperdine University that surveys rates of return expected by investors, lenders, private equity groups, venture capital firms, and more. The Cost of Capital Center already includes some information from the report, as well as such data as Treasury yields, inflation estimates, long-term real GDP growth, and historical ERPs. The Cost of Capital Center is part of BVU’s monthly BV Data Spotlight that also includes DealStats MVIC/EBITDA trends, data from the FactSet/BVR Control Premium Study, and economic outlook data and forecasts.
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