Cost of Capital Professional
The Cost of Capital Professional platform provides business valuators and analysts with equity risk premia, size premia, risk-free rates and an online platform (with data similar to the original Ibbotson SBBI data) that allows users to compute cost of equity and WACC estimates. This powerful resource provides a simple and transparent way to estimate cost of capital, and includes year-end 2023 equity risk premia, CRSP decile size premia, and industry betas/IRPs.
Enjoy freedom with this state-of-the-art resource that gives you the ability to use your professional judgment in developing cost of equity estimates using the build-up method and CAPM.
Contact us today to sign up for a free trial >>
Get more of what you need and less of what you don't:
- Save Money with the most affordable solution for size premiums at a price point that's a 1/3 of the cost as others on the market today.
- Rely on credible information sources including Damodaran, Salvidio & Partners, CRSP, and the Federal Reserve.
- Save Time by quickly and easily computing cost of equity and WACC estimates with a simplified, streamlined, user-friendly platform.
- Support your hard work with full transparency and always see the components of your cost of capital, how the figures were calculated, and the citations of all sources used.
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Enjoy flexibility and take control over the time period of historical return data for your analysis. Unlike other sources, you can customize your time horizon with data going back to 1928.
Please note: Pricing is $395 for the first user/$150 per each additional user. (To add additional users, please call 1-503-479-8200 ext. 2)
Is the platform right for you?
Please note: The Cost of Capital Professional platform does not include the CRSP 10th decile breakdown.
Dr. Aswath Damodaran’s data are used with his permission. Dr. Aswath Damodaran has no formal role or connection with BVR or the Cost of Capital Professional.
Harness the platform with:
- Replicability—Valid evidence supporting your claims should be reproducible. If it is not reproducible, it could be argued as coincidence. The Cost of Capital Professional platform offers an independent calculation of the market returns. Can you afford to not have proof of replication?
- Reliability—Rule 702 requires testifying experts use reliable methods and principles. The use of CRSP data has stood the test of time.
- Flexibility—Unlike other sources, you have control over the time period of historical return data for your analysis. You can choose which time horizon (e.g. specific historic years) that is appropriate for your case.The data goes back to 1928.
- Accuracy—The Cost of Capital Professional platform is based on the same finance theory used in the original SBBI series.It's prepared by Dr. Michael Crain, a nationally recognized practitioner and educator on equity risk premia and size premia analyses.
- Objectivity—BVR is a publisher and not affiliated with any financial institution, so you can be sure our methodologies and results are independent and objective, as expected by courts, Internal Revenue Service, and professional standards of practice such as USPAP, IVS, and VS100 (SSVS-1).
- Comprehensiveness—For Build up Method and MCAPM analyses.
Free Webinar + Demo
Dr. Michael Crain, Ron Seigneur and Adam Manson hosted a webinar on April 17, 2024 that explored a conceptual overview, walkthrough and discussion about enhancements to the platform. Join them as they explore how Cost of Capital Professional gives you the ability to use your professional judgment when developing cost of equity estimates.
Cost of Capital Professional Author
Dr. Michael A. Crain, CPA/ABV, CFA, CFE
Michael A. Crain (Florida Atlantic University) of Boca Raton, Florida is both an academic and a practitioner. Mike received his Doctor of Business Administration (finance) degree from Manchester Business School in England at the University of Manchester. He has been a licensed CPA and practitioner for over 30 years and holds several certifications in valuation: Accredited in Business Valuation (ABV) from the American Institute of CPAs and the designation of Chartered Financial Analyst (CFA) from the CFA Institute. He also holds the designation of Certified Fraud Examiner (CFE) from the Association of Certified Fraud Examiners. Mike is a past chairman of the AICPA’s Business Valuation committee and has been inducted into the AICPA Business Valuation Hall of Fame. He is a recipient of AICPA's Lawler Award presented by Journal of Accountancy for best article of the year and AICPA’s Sustained Contribution Award.
In addition to his work in teaching and director of FAU’s Center for Forensic Accounting, Mike consults with clients and is senior advisor to Miami-based Kaufman Rossin. In his consulting. Mike works largely in the areas of business/economic damage measurement, valuation of businesses and financial assets, and forensic accounting. He has served as a consulting and testifying expert in many commercial cases working for both plaintiffs and defendants in state and Federal courts. He has also served as an arbitrator in commercial damages and minority shareholder cases and as a court-appointed accountant. Moreover, Mike has previously worked in the auditing and consulting areas in public accounting firms including an international firm where he was a senior manager.