Cost of Capital Professional—Straightforward, Credible, Cost-Effective (FREE WEBINAR)
The Cost of Capital Professional from BVR is a 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 independent, economical, and transparent platform that empowers users to make professional judgments while avoiding the illusion of precision ...
The Size Effect Continues To Be Relevant When Estimating the Cost of Capital
In this paper, I will review the size effect, potential reasons why one observes the size effect, and correct common misconceptions and address criticisms of the Size Premia (SP). Specifically, we demonstrate that the size premium critique by Cliff Ang is not warranted and that the alternative methodology proposed by that author is misleading and cannot be considered as an alternative to the Duff & Phelps’ SP. Subsequently, we will highlight some methodological issues with ...
New measures of risk that really work!*
I've often said that the greatest challenge for skilled business appraisers is to quantify risk and translate the results into a required rate of return (discount rate). The latest work of Roger Gra ...