U.S. Case Studies Using the Duff & Phelps Valuation Handbooks: Practical Application of the Valuation Profession's Most Relied Upon Cost of Capital Resource (Day 1—FREE Webinar)
A supportable cost of capital estimate is a key ingredient in estimating the value of a business. The Duff & Phelps Valuation Handbook series is at the forefront in providing the cost of capital inputs (equity risk premia, size premia, industry risk premia, risk-free rates, country risk premia, etc.) that are used to develop cost of capital estimates, both in the United States and internationally. Join the Duff & Phelps team that produces the Valuation ...
Private firms' cost of equity estimates may surprise you
Results of the “2017 Private Capital Markets Report" from Pepperdine University Graziadio School of Business and Management. BVR is a research sponsor in Pepperdine’s efforts in developing a private cost of capital method as a legitimate alternative to looking to the public markets.
Monte Carlo: Applications, Examples and Best Practices for Valuation (eLearning course)
Excel for Valuation: Beginner to Advanced (eLearning course)
Damodaran updates data-rich cost of capital spreadsheets
Professor Aswath Damodaran (New York University Stern School of Business) has released new data posts and data sets updated for 2017 related to valuation and the cost of capital, including historical stock returns, implied equity risk premiums, country risk premiums, and more.
Business Valuation Update Yearbook, 2017 Edition
February 2017 PDF (349 pages)
BVR (editor)
Business Valuation Resources, LLC
Brexit's impact on cost of capital
The Brexit vote reinforces the need for internal consistency between the elements of cost of capital and the current economic environment, according to leading global valuation experts and finance professors. Also, there may be a “new normal” in terms of interest rates, risk premiums, and growth.
The Size Effect—It Is Still Relevant
Practitioners commonly incorporate a size premium when developing their cost of capital estimates using the modified capital asset pricing model (MCAPM). This article is intended to correct common misconceptions about the size premium and demonstrate that data from recent periods support the continued use of a size premium.
Part II: Appraiser vs. Real-World Debates: The Case for Using Private Capital Markets Data
In the 1st part of this series we focused on how appraisers and the real world have such differing views on ‘costs of capital,’ ‘capital access,’ and, thus, valuation. In Part I, entitled “Appraisers vs. Real World Debates: How many appraisers can dance on the head of the private capital market?,” I referenced that there is a considerable gap between reality and the hypothetical, which further limits the strategic value of business appraisals. In this ...
A Consensus View: Q&A Guide to Financial Valuation 2016 edition
March 2016 PDF
James Hitchner, Jay Fishman, Shannon Pratt
The Implied Private Company Pricing Line (IPCPL): On the Nature, Scope, and Assumptions of IPCPL Theory
The implied private company pricing line (IPCPL) was recently introduced to the business valuation literature as a means of using public equity market data to estimate the (fair market) value of small- and medium-sized privately-held enterprises. The IPCPL is based on the fundamental assumption that no arbitrage opportunities exist between privately-held and publicly-held equity. This is the fundamental assumption underlying modern asset pricing theory. Although the IPCPL has generally been presented in the literature as ...
Part I: Appraiser Versus Real World Debates: How Many Appraisers Can Dance on the Head of the Private Capital Markets?
The largest unchartered territory on the business appraisal map is the private capital markets. These markets contain more than 99% of business entities comprising millions of companies and generate half of the gross domestic product of the United States and the world. Not only are the companies operating in these markets difficult to value, but there is no, one, unified agreed upon method of how to approach cost of capital determinations for valuation engagements. The ...
BVR Legal and Court Case Yearbook 2016
February 2016 PDF (262 pages)
BVR (editor)
Business Valuation Resources, LLC
Business Valuation Yearbook 2016
February 2016 PDF (371 pages)
BVR (editor)
Business Valuation Resources, LLC
BVR Legal and Court Case Yearbook 2015
February 2015 978-1-62150-047-6 PDF (262 pages)
BVR (editor)
Business Valuation Resources, LLC
Business Valuation Update Yearbook 2015
February 2015 978-1-62150-048-3 PDF
BVR (editor)
Business Valuation Resources, LLC