Kroll has decreased its recommended U.S. equity risk premium (ERP) from 6.0% to 5.5% when developing USD-denominated discount rates as of June 8, 2023. This is matched with the higher of a normalized risk-free rate of 3.5% or the spot 20-year U.S. Treasury yield as of the valuation date, says the firm in a recent update. In the same update, Kroll says the current recommended ERP in the eurozone (from a German investor perspective) remains in the range of 5.5% to 6.0%.