CCPro now includes industry debt, unlevered betas

BVWireIssue #265-2
October 9, 2024

cost of capital
beta, weighted average cost of capital (WACC), cost of capital professional

This past Monday, BVR went live with two enhancements to its Cost of Capital Professional (CCPro) platform, which are:

  • Industry debt percentages. The platform now includes industry debt percentages that can be used when determining a weighted average cost of capital (WACC). Users have the flexibility to enter any inputs from outside the platform, and it includes a “notes” box to add documentation about that input.
  • Unlevered betas. CCPro currently provides levered industry betas that users can use to calculate an industry risk premium (IRP) for use in the buildup method (BUM). The new enhancement now provides access to unlevered industry betas, which allows the user to relever using the Hamada formula at their selected debt-to-equity ratio, for use in the capital asset pricing model (CAPM).

For more details on the platform, go to the CCPro webpage.

Please let us know if you have any comments about this article or enhancements you would like to see.