New D&P Calculator built to save time, money, mistakes

BVWireIssue #113-4
February 22, 2012

The new Duff & Phelps Risk Premium Calculator has just arrived. Created by James Harrington and Roger Grabowski (both Duff & Phelps), the D&P Calculator is a web-based model into which users can enter 1-18 inputs and receive an Executive Summary, an Excel spreadsheet, and an HTML package of the results, including four cost of equity estimates (one that is unlevered). Plus, the Calculator is current with 2012 data. The PDF version of the 2012 Duff & Phelps Risk Premium Report, with over 70 pages of new material—including an extensive discussion of adjustments in the current economy—will be available in March.

“The D&P Calculator was created to save appraisers huge sums of time and money,” says Adam Manson, BVR’s manager of financial research. “There’s no need to look up numbers in tons of tables or to plug in your subject’s data into numerous regression formulas; the Calculator does all the heavy lifting for you. Additionally, the Calculator greatly improves your accuracy—a user may mis-key a number or formula, but the Calculator will not. The D&P Calculator not only gives you the ERP and size premium, but it will actually insert it into various cost of equity formulas for you as well, giving a final COE calculation.”

Free webinar on 2012 D&P data and calculator: Purchasers of the D&P Report and/or Calculator will receive complimentary access to a webinar with co-creator Harrington on Tuesday March 13: Introducing the 2012 Duff & Phelps Risk Premium Report & Calculator, which includes a live demo of the calculator and an in-depth discussion of all the new 2012 data.

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