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 2022 equity risk premia, CRSP decile size premia, and industry betas/IRPs.
Contact us today to sign up for a free trial >>
Users can take advantage of:
- NEW: Gain access to Cost of Capital Professional Summaries with your subscription. An annual report that provides year-end summary information of all the key figures from the platform, allowing you to quickly grab a variable you need for use in your work at any time.
- Simplicity: The Cost of Capital Professional allows you to arrive at a straightforward cost of equity, so you don't have to spend a lot of time explaining your methodology choices.
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Credibility: The platform uses the CRSP (Center for Research in Security Prices) market return data set. This 10-decile data set is the most respected and widely-used basis for size premia in practice and academia.
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Transparency: You will always see the components of your cost of capital, how the figures were calculated, and the citations of all sources used—everything you need to support your work.
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Additional features: Take advantage of additional features such as beta-adjusted size premia (size premia in excess of CAPM), industry risk premia, Excel download for user-selected variables, ability to compute weighted average cost of capital (WACC), and more!
Please note: Pricing is $295 for the first user/$100 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).
- Comprehensive—For Build up Method and MCAPM analyses.
Free Webinar + Demo
Dr. Michael Crain and Ron Seigneur presented a free webinar on March 6, 2019 of the Cost of Capital Professional where they covered the new enhancements of the platform as well as a demo of the product. Watch full screen on YouTube >>
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.