At the end of this month, BVR and Duff & Phelps will unveil the game-changing Duff & Phelps Risk Premium Calculator, designed by Roger Grabowski and James Harrington and available exclusively through BVR. The Calculator is a web-based model into which users can enter 1-18 inputs. The Calculator delivers an Executive Summary, an Excel spreadsheet as well as an HTML package of your results, which include four Cost of Equity estimates (one that is unlevered) and considers industry specific risk should the user choose to account for it. Grabowski and Harrington have also built functionality into the Calculator that analyzes and reports on high financial risk companies – one of many features never previously available in any risk premium tool on the market.
Two other ground-breaking features that the Duff & Phelps Risk Premium Calculator can tout are: 1) built-in risk free rate lookup – you no longer need to retrieve the rate yourself, the Calculator finds it for you based on your valuation date, and 2) the Calculator makes the equity risk premium adjustment – a crucial step often overlooked by valuation analysts. A one-year subscription (unlimited use) to the Calculator includes two years of data (including the most current year), as well as a PDF of the most current year’s Duff & Phelps Risk Premium Report and will be available for $399. For $759 you can get the Calculator that includes all historical data, 1995-current year – as well as a PDF of the most current year’s report. If you want to give the Calculator a whirl you can still purchase a PDF of the 2011 (or any past year) report for $275 that includes a free, one-time use of the Calculator. Any D&P purchase through BVR automatically gains you access to two exclusive webinars; save the dates: Jim Harrington will demo the D&P Calculator on February 8 at 10 a.m. PT/1 p.m. ET and Roger Grabowski will discuss the 2011 D&P Risk Premium Report and its underlying data on March 1 at 10 a.m. PT/1 p.m. ET.
Look for more news on the D&P Risk Premium Calculator in next week’s BVWire, but in the meantime you can download a sneak peak of the COE estimates here.