The Kroll Cost of Capital Navigator continues to be widely used and accepted for estimating cost of equity (COE), per the results of a poll during BVR’s recent Cost of Capital Virtual Conference. Over 100 attendees were asked: Which methods/data sources do you use for the equity risk premium (ERP) in your cost of equity estimates? (select all that apply). The responses:
Kroll Navigator | 61% |
BVR Cost of Capital Professional | 29% |
Supply-side ERP (Kroll) | 26% |
Long-term historical average (Kroll) | 22% |
Professor Aswath Damodaran’s implied ERP | 7% |
Other historical or implied ERP sources | 4% |
Professor Pablo Fernandez’s ERP survey | 0% |
Other/not applicable | 9% |
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