FAQs posted for new cost of capital platform
A set of FAQs for BVR’s Cost of Capital Professional (CCP) has been added to the webpage that explains the new independent service for estimating the cost of equity.
Board of advisors shapes up for BVR’s new cost of capital platform
Experts from the who’s who of the business valuation world have joined the advisory board for BVR’s Cost of Capital Professional (CCP), the new independent service for estimating the cost of equity.
BVR to Launch New Platform for Estimating the Cost of Capital
The time is right for a simple, independent service to augment each appraiser’s own professional judgment and his or her other research when estimating the cost of capital. A free trial period begins in November, and feedback is requested.
BVU News and Trends November 2018
A monthly roundup of key developments of interest to business valuation experts.
BVR christens new platform for estimating the cost of capital
The Cost of Capital Professional is the name chosen for BVR’s new, simple, independent service for estimating the cost of equity.
BVR to launch new platform for estimating the cost of capital
Business valuation experts will soon have an additional option for estimating the cost of equity.
The Absence of a Size Effect Relevant to the Cost of Equity
In this paper, I evaluate whether there is a size effect that is relevant to the cost of equity. I first analyze what model investors use to determine the required rate of return on their investment and find investors prefer the Capital Asset Pricing Model (CAPM) over other models, even those that include a size proxy. I also show that over the period 1981 to 2016, small stocks underperformed large stocks, which is inconsistent with ...
The effect of shareholder lawsuits on cost of equity
A firm may see adjustments to its cost of equity capital either at the time a shareholder lawsuit is filed or when the outcome of the lawsuit is determined—or both—says a new paper by William J. Moser (Miami University).
BVU News and Trends June 2018
A monthly roundup of key developments of interest to business valuation experts.
Global BVU News and Trends May 2018
Business valuation news from a global perspective.
BVU News and Trends May 2018
A monthly roundup of key developments of interest to business valuation experts.
Private firms lowball their cost of equity
Surprisingly, over half (54%) of privately held business owners believe their cost of equity is less than or equal to 12%, according to the “2018 Private Capital Markets Report” from Pepperdine University Graziadio School of Business and Management.
CFOs surveyed on ERP
In a new paper, John R. Graham and Campbell R. Harvey of Duke University analyze the history of the equity risk premium from surveys of U.S. chief financial officers (CFOs) conducted every quarter from June 2000 to December 2017.
Private firm valuations surge, per Pepperdine report
Business valuations have been significantly increasing, according to new results from the “2018 Private Capital Markets Project” from Pepperdine Graziadio Business School.
D&P answers (more) questions on the Navigator
Duff & Phelps did a fine job fielding another barrage of probing questions about its new Cost of Capital Navigator during a free webinar (watch a replay here).
Free webinar on Cost of Capital Navigator Q&As
The huge audience at our webinar on the Duff & Phelps Cost of Capital Navigator had so many good questions that we ran out of time, so there will be a free webinar on March 29 with Jim Harrington of D&P.
Explaining BV to clients
An article gives some tips on how to have preliminary discussions with business owners about the valuation process and how it works.
The New Duff & Phelps Cost of Capital Navigator—(Some of) Your Questions Answered!
Responses to audience questions during the first public demo of the Duff & Phelps online Cost of Capital Navigator, which will replace the print versions of the Valuation Handbook series.
Duff & Phelps Moves Cost of Capital Data to Online Platform
Duff & Phelps is launching the online Cost of Capital Navigator, which will replace the print versions of the Valuation Handbook series.
SECBA gets sneak preview of the D&P Cost of Capital Navigator
The hardcover version of the Duff & Phelps Valuation Handbook – U.S. Guide to Cost of Capital will no longer be published—it is being replaced by the Duff & Phelps Cost of Capital Navigator, an interactive online application.
An “Enhanced Multiple” Corporate Valuation Model: Theory and Empirical Tests
In this article, we develop an enhanced corporate valuation model based on the implied cost of equity capital (ICC). We argue that the enhanced method extends the standard market multiples and discounted cash flow (DCF) methods to corporate valuation. Specifically, it incorporates positive aspects of the market comparables and DCF methods while mitigating the shortcomings of both. Unlike the traditional market comparables method, the enhanced method takes account of the full-term structure of earnings forecasts.
Is "bottom-up" method acceptable in valuing minority interests?
Is "bottom-up" method acceptable in valuing minority interests? I just did a presentation to a large law firm. A senior partner in the firm took issue with the "bottom ...
Valuers should lower equity risk premium component of discount rate
I am now convinced that the long-term arithmetic average general equity risk premium (currently 7.0%) is too high.
Small stock risk premium no myth; size does matter
Until about a year ago, I thought that, on average, the fact that small stocks are riskier than large stocks had been firmly established in the financial community, and that attacks on the "small stoc ...
DCF valuation should be improved
The discounted cash flow (DCF) technique is a staple of financial management textbooks, one might even say an idol not to be questioned. Our purpose is to show that the conventional way of computing D ...