Insights Into the Latest Pepperdine Study—and How to Use It
At the ASA International Conference in Portland, Dr. Craig Everett, Pepperdine’s executive director, gave some observations into the latest version of the report and advised the audience how to use its results.
Grabowski on Using Academic Research to Back Up CSRP Estimates
Roger Grabowski, managing director (ret.) at Kroll, discusses the company-specific risk premium (CSRP) and how academic research can strengthen estimates and withstand challenges that the numbers are just picked out of the air.
More data updates from Damodaran
He’s up to his fifth data update for 2025, titled “It’s a Small World, After All!”
Reminder: Take Pepperdine’s 2025 private cost of capital survey
Each year, Pepperdine University conducts an annual survey of expected rates of return with respect to private companies.
Now open: Pepperdine’s 2025 private cost of capital survey
Each year, Pepperdine University conducts a survey of expected rates of return with respect to private companies.
Year-end 2024 data now live in BVR’s CCPro
Year-end 2024 data, including equity risk premia, CRSP decile size premia, and industry betas/IRPs, are now available in BVR’s Cost of Capital Professional platform.
Business Valuation Case Law Yearbook, 2025 Edition
February 2025 PDF (192 pages)
BVR (editor)
Business Valuation Resources, LLC
Business Valuation Update Yearbook, 2025 Edition
February 2025 PDF (418 pages)
BVR (editor)
Business Valuation Resources, LLC
Polls examine cost of capital methodologies and practice
During BVR’s recent Cost of Capital Virtual Conference, several poll questions were asked. Here are the results from the rest of the questions that were asked.
Damodaran posts his first data update for 2025
At the beginning of each year, Professor Aswath Damodaran (New York University Stern School of Business) generously posts a great amount of data on his website that include risk-free rates, equity risk premiums (ERPs), corporate default spreads, corporate tax rates, country risk premiums, and other data—all of which are free.
Poll reveals methods and data sources for ERP
The Kroll Cost of Capital Navigator continues to be widely used and accepted for estimating cost of equity (COE), per the results of a poll during BVR’s recent Cost of Capital Virtual Conference.
BVR’s Cost of Capital Professional Platform (Cost of Capital Virtual Conference)
The Cost of Capital Professional platform from BVR is an economical source of cost of capital information that integrates data from multiple credible sources, including the University of Chicago’s Center for Research in Security Prices (CRSP), Professor Aswath Damodaran, Salvidio & Partners, and the U.S. Federal Reserve. The philosophy behind this resource is to provide valuation practitioners with an economical, practical, independent, and transparent platform that empowers users to make professional judgments while avoiding the ...
Advisory on Company-Specific Risk Premium (Cost of Capital Virtual Conference)
This session will preview certain areas of the forthcoming VFR Advisory on the topic of company-specific risk premium (CSRP). We will discuss the working group’s view on best practices in evaluating and quantifying CSRP for financial reporting purposes (although concepts outlined may be useful for other valuation measurements). We will also explore other topics related to CSRP assessment, including prospective financial information assessment and considerations related to other discount rate elements.
Understanding IPCPL Theory (Cost of Capital Virtual Conference)
The webinar will provide a comprehensive overview of implied private company pricing line (IPCPL) theory, empirical evidence, and application. IPCPL theory implies private capital market transaction costs represent the shadow price of liquidity risk in private capital markets, i.e., the price of liquidity risk were it traded explicitly in private capital markets. Such theory is well-grounded in valuation theory and the underlying asset pricing and financial economic theories. IPCPL theory has been empirically tested and ...
Evolution of the BUM (Cost of Capital Virtual Conference)
This session will focus on the unsystematic risk component within the traditional buildup model (BUM) when developing discount rates for appraisal and damages engagements. Attention will be given to a historical review of analytical frameworks and perspectives over the last 40 years beginning with the Shilt table and evolving to current frameworks for expressing professional judgment in this key area of discount rate development. This session will follow much of the thinking contained in Mr.
New Research on Decile 10 Firms (Cost of Capital Virtual Conference)
Earlier academic research has shown that smaller-listed firms, which have been the basis for size premiums, tend to have different financial characteristics than larger-listed firms, such as profitability and leverage. This presentation will describe the speaker’s original research of the financial characteristics of smaller-listed firms and compare them to the characteristics of unlisted small and medium-sized businesses that most in the BV community value.
Current Environment and State of Cost of Capital (Cost of Capital Virtual Conference)
This session will focus on the latest trends in the current economic environment and the impact on the cost of capital. The session will begin with an economic review over the past year and a look at trends in key economic variables. The session will also include a review of economic forecasts from key publications and then take a deeper dive into the various cost of capital impacts and how the current economic environment and ...
A Pepperdine first: PE multiples up, VC down
“There’s something this year that I’ve never seen before” about private equity and venture capital multiples, remarked Dr. Craig Everett, project director of the Pepperdine Private Capital Markets Project.
Tomorrow! BVR’s Cost of Capital Virtual Conference
Tune in tomorrow, January 16, for BVR’s live virtual conference devoted to the cost of capital.
Next week: BVR’s Cost of Capital Virtual Conference
Mark down January 16 on your calendar for BVR’s live virtual conference devoted to the cost of capital.
Grabowski gives update on company-specific risk guidance
At the NACVA 2024 Business Valuation & Financial Litigation conference last week in Las Vegas, Roger Grabowski, now retired from Kroll, gave an update on the upcoming valuation advisory from The Appraisal Foundation that will address the complex and often contentious topic of company-specific risk premiums (CSRP).
Navigating ESG: The Evolving Landscape and Its Impact on Business Value
Join us to understand the evolving landscape of ESG, including ESG financial reporting developments in the United States and the state of California, as well as some international disclosure requirements impacting U.S. companies. Attendees will also learn how the new International Valuation Standards (IVS) effective January 2025 will address the integration of ESG factors in business valuations. The discussion extends to the significant impacts of ESG on M&A, projected cash flows and the cost of ...
CCPro now includes industry debt, unlevered betas
This past Monday, BVR went live with two enhancements to its Cost of Capital Professional (CCPro) platform.
The Continuing Evolution of the BUM
The author provides some very interesting reflections and perspectives, drawn from over 40 years of experience, and brings us up to date on this long-lasting method.
Valuation Report Excerpts Using Pepperdine to Estimate a Discount Rate
Sample language adapted from actual valuation reports using information from Pepperdine’s “2024 Private Capital Markets Report” to estimate cost of capital for a small business, including an adjustment for company-specific risk.