Over half (51%) of BV practices now rely on cost of capital data from the Duff & Phelps, LLC Risk Premium Report, according to BVR’s 2009 Business Valuation Firm Economics & Best Practices Survey. Compare this to just two years ago, when BVR’s survey reported that only 19% of responding firms relied on Duff & Phelps data. The survey permitted multiple responses regarding use of research tools, and found that Ibbotsons still tops the list, with over 86% of BV firms using the Stocks, Bonds, Bills, and Inflation® Yearbooks (now published by Morningstar). Pratt’s Stats® and BIZCOMPS® are number two and three on this year’s list, while Duff & Phelps has leapt from the bottom to the fifth most popular research tool among BV professionals.
Free Duff & Phelps download. To inform the rising use of this comprehensive cost of capital research tool, we’ve just posted an excerpt from this year’s (2008) Risk Premium Report as a Free Download at BVResources.com. This includes over 30 pages of information and exhibits on historical risk premiums, size, and other critical measures. And for more on the most up-to-date financial metrics, compensation and billing rates, marketing and research benchmarks of BV firm practices—compiled from nearly 600 responding firms—be sure to check out BVR’s 2009 Business Valuation Firm Economics & Best Practices Survey.
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