Kroll has decreased its recommended U.S. equity risk premium (ERP) from 5.5% to 5.0% when developing USD-denominated discount rates as of June 5, 2024. Also, Kroll recommends using the spot 20-year U.S. Treasury yield as the proxy for the risk-free rate if the prevailing spot yield as of the valuation date is higher than the Kroll normalized U.S. risk-free rate of 3.5%. For more details on Kroll’s recommendations including an explanation of factors and trends it takes into account, click here.
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