Valuation Handbook Risk Premium Toolkit (Includes 2017 Valuation Handbook - Guide to Cost of Capital)


IMPORTANT UPDATE: The Risk Premium Toolkit has been replaced with the Cost of Capital Navigator. Learn more about the new Duff & Phelps tool and see a video walkthrough from Roger Grabowski.

Designed by Roger Grabowski and James Harrington, the Valuation Handbook — Risk Premium Toolkit is a web-based model that offers defensible cost of capital measures, particularly for small target companies. Users can perform a calculation based on risk premium report data or CRSP deciles data.

"The Risk Premium Toolkit is an outstanding tool that will save you time and money...this is a must for all practitioners!" 
Gary Trugman, CPA/ABV, MCBA, ASA, MVS, Trugman Valuations

Each calculation instantly delivers a fully customizable “Executive Summary” in Microsoft Word format that includes sourcing, key inputs, and a concluded range of cost of equity capital estimates using both the buildup and CAPM methods. The Toolkit also delivers historical equity risk premiums (ERPs) and size premiums for 25 size ranked portfolios using 8 alternative measures of company size. With the robust built-in functionality, you can analyze and report on high financial risk companies – one of many benefits not available in any risk premium tool on the market. 

BONUS! A subscription to the Valuation Handbook — Risk Premium Toolkit includes a print copy of the 2017 Valuation Handbook - Guide to Cost of Capital and three quarterly PDF dataset updates of industry risk premiums for use in the build-up method. Take advantage of this cost-effective resource that includes the size premium and ERP data available in the two most recent editions of the Valuation Handbook – U.S. Guide to Cost of Capital.

Additional Product Details

Benefits of the Valuation Handbook — Risk Premium Toolkit:

  • Two years of essential sets of valuation data: the CRSP Size Study (the data previously available in the Morningstar/Ibbotson SBBI Valuation Yearbook), and the Duff & Phelps Risk Premium Study (The size premia, “risk premia over the risk-free rate”, equity risk premia, and other valuation data previously published in the Duff & Phelps Risk Premium Report)

  • Print copy of the 2017 Valuation Handbook - Guide to Cost of Capital (available March 2017) and three quarterly dataset updates delivered via PDF

  • Automatic output — COE for your subject company is calculated using up to five different methods, and a summary of the results is presented in an “Executive Summary” in Microsoft Word format, plus a detailed, auditable, record of all inputs, outputs, and calculations in Microsoft Excel workbook format
  • Built-in risk free rate lookup — no need to retrieve the rate yourself, the Toolkit finds it for you based on your valuation date

  • Equity risk premium adjustment (a.k.a. market risk premium) — the Toolkit makes this adjustment, a crucial step often overlooked by valuation analysts

  • Time-saving and user-friendly — user experience is easy, while at the same time maintaining the same analytical horsepower of the Duff & Phelps report "under the hood"

  • Access to the Duff & Phelps Update, a quarterly email with tips and timely news

  • Detailed step-by-step user guides for both data sets