The 2013 Duff & Phelps Risk Premium Report—which includes data through Dec. 31, 2012—is now available via the online Duff & Phelps Risk Premium Calculator.
“The online Duff & Phelps Risk Premium Calculator enhances the usability of the current Risk Premium Report by calculating cost of equity estimates (COE) based on user-provided inputs,” says James Harrington (Duff & Phelps). “The Calculator quickly delivers four COE estimates using the capital asset pricing model (CAPM) and the buildup method, and also provides contextual information in a variety of formats,” including an executive summary in Microsoft Word that lists sourcing, key inputs, and a range of COE estimates. The Calculatoralso exports a detailed record of all inputs, outputs, and calculations to a “Support and Detail” Microsoft Excel workbook.
New this year: The 2013 Risk Premium Report expands the section on how to use the data for valuing very small companies. For example, it lists the smallest and largest companies in “Portfolio 25” (the smallest category) for each of the eight size measures, thereby giving the appraiser a greater capability to gauge the comparative size characteristics of his or her subject company and support any subsequent adjustments. Get instant access to the 2013Duff & Phelps Report by ordering the updated Calculator (that now also includes all of the historical Duff & Phelps Reports back to 1996) by clicking here or order only the 2013 Reporthere (available mid-March).