Fernandez releases survey of 2023 risk premiums and risk-free rates

BVWireIssue #247-2
April 12, 2023

cost of capital
cost of capital, international business valuation, international cost of capital

The results of Professor Pablo Fernandez’s latest survey of the market risk premiums and risk-free rates used in 80 countries in 2023 are now available. Many business valuers refer to this long-standing survey in their cost of capital analyses. Based on U.S.-only responses, Fernandez found an average market risk premium of 5.7% and a median of 5.5%. Not surprisingly, countries such as Ukraine, Argentina, and Venezuela lead all nations, with rates between 23% and 30%. The paper also contains the links to all previous surveys, 2008 to 2022. To download the paper, click here.

Co-authors of the survey are Diego García and Javier F. Acin, all with the IESE Business School in Spain. Fernandez is a professor of finance at the school and has over 200 papers published on SSRN, many of them related to valuation. He currently ranks as No. 1 in all-time downloads on the site.

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