An improved Duff & Phelps 2011 risk premium service...


D&P has added a new Risk Premium Calculator to the BVR edition of its 2011 Risk Premium Report.   The calculator speeds your cost of capital calculations by screening out all but the relevant data based on the demographics of your subject company--for any valuation date after January 2009 (there's an option to get the Calculator with all D&P data back to 1996, as well).  A second benefit of the Calculator is that it automatically calculates the elements of the build-up method and CAPM from the Duff data--so you can be absolutely certain you're using the Risk Premium Report the way author Roger Grabowski intended.

Some other benefits of the new tool, compared to using the Report by itself or using the Excel tool available through ValuSource, are 1) the ValuSource tool does not make an ERP adjustment, 2) the D&P Calculator retrieves the correct risk free rate for you (if you're not using BVR's free Risk Free Rate Lookup service!) and 3) the new D&P Risk Premium Calculator incorporates the industry risk adjustment.

BVR is working with Duff & Phelps' Jim Harrington to make the RPC available to its customers exclusively.   We'll update your account to include access to the Calculator when it's ready in January (note:   this will give our customers access to 2010 data months earlier than in previous years).

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