New benchmark resource for industry cost of capital

BVWireIssue #144-1
September 10, 2014

A companion resource to the 2014 Valuation Handbook—Guide to Cost of Capital is in the wings: the 2014 Valuation Handbook—Industry Cost of Capital, published by Duff & Phelps.  This resource replaces the discontinued Morningstar/Ibbotson Cost of Capital Yearbook—but will include additional methods to calculate cost of equity capital and new statistics previously unavailable that will allow for a more robust analysis.

Over 200 U.S. industries are represented in the 2014 Valuation Handbook—Industry Cost of Capital. For each of these industries, you’ll find:

  • Cost of equity capital estimates--using eight different methods.
  • Cost of debt capital.
  • Weighted average cost of capital.

New statistics: The 2014 Valuation Handbook—Industry Cost of Capital also provides detailed statistics for sales, market capitalization, capital structure, various levered and unlevered beta estimates, valuation (trading) multiples, ratios, equity returns, aggregate forward-looking EPS growth rates, and more. Some of these statistics have not been previously available.

Also for each industry there are new statistics that can be used to gauge the impact of “debt-like” off-balance sheet items on the capital structure of the subject industry. The analysis is calculated two ways: with and without these liabilities so the user can ascertain how material they are for the subject industry.

The 2014 Valuation Handbook—Industry Cost of Capital is published with data through March 2014. Quarterly Updates (June, September, and December) will be available, but they are an optional add-on and not sold separately.

The 2014 Valuation Handbook—Industry Cost of Capital and Quarterly Updates will be available from BVR. Look for more announcements soon about availability. In the meantime, please email with inquires.

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