Global BV News: Pablo Fernandez needs your input
In their cost of capital analyses, many business valuers refer to a long-standing survey conducted by Professor Pablo Fernandez (IESE Business School, Spain).
Kroll conducts survey of cost of capital inputs
In the last issue, we presented results of several surveys on the various resources practitioners use for estimating cost of capital.
BV News and Trends June 2023
A monthly roundup of key developments of interest to business valuation experts.
Global BVU News and Trends May 2023
Business valuation news from a global perspective.
Fernandez releases survey of 2023 risk premiums and risk-free rates
The results of Professor Pablo Fernandez’s latest survey of the market risk premiums and risk-free rates used in 80 countries in 2023 are now available.
Global BV News: Emerging markets ramping up ESG efforts, per BCG
Although they had a slow start getting on the ESG bandwagon, emerging markets are catching up big time.
Global BV News: CFA Institute issues Kroll’s global cost of capital 2022 summary edition
The CFA Institute Research Foundation has put out the “Valuation Handbook—International Guide to Cost of Capital 2022 Summary Edition” from Kroll.
Global BV News: Updated study of European capital markets released
The 11th edition of the “ValueTrust European Capital Market Study” provides an analysis of cost of capital parameters, returns (implied and historical) and trading multiples.
Global BV News and Trends January 2023
Business valuation news from a global perspective.
Global BV News: KPMG releases cost of capital study
KPMG has published its “Cost of Capital Study 2022” that addresses the impact of high inflation on company valuations.
Global BV News and Trends August 2022
Business valuation news from a global perspective.
Global BV News: 2022 market risk premium and risk-free rate indications from Pablo Fernandez
The results of Professor Pablo Fernandez’s latest survey of the market risk premium (MRP) and risk-free rate (RF) used in 95 countries in 2022 has been released.
Global BV News and Trends June 2022
Business valuation news from a global perspective.
Global BV News: Eurozone ERP, risk-free rates unchanged: Kroll
Kroll has left unchanged (until further notice) its recommended German normalized risk-free rate of 1.5% and its current eurozone equity risk premium range of 5.5% to 6.0% (from a German investor’s perspective).
Global BV News: VAB6 review on IVSC website
A comprehensive review of Valuing a Business, 6th edition (VAB6) is on the website of the International Valuation Standards Council (IVSC), calling it a “foundational reference for business valuation education worldwide.”
Global BV News: Cost of capital parameters in Europe as of Dec. 31, 2021
ValueTrust has released the 9th edition of its “European Capital Market Study” that serves as a comprehensive compilation of capital market parameters such as cost of capital and implied as well as historical risk premiums for European countries.
Cost of Capital in Cross-Border Valuations
Join Carla Nunes and James P. Harrington, both of Kroll (formerly Duff & Phelps), for a presentation about developing cost of capital estimates for cross-border (i.e., international) valuations. This presentation includes a comprehensive case study along with a framework for cross-border valuations and common errors to avoid. Hear a discussion of models and data sources, and see the models in action.
Global BV News and Trends October 2021
Business valuation news from a global perspective.
Global BV News and Trends September 2021
Business valuation news from a global perspective.
BV News and Trends August 2021
A monthly roundup of key developments of interest to business valuation experts.
Global BV News and Trends August 2021
Business valuation news from a global perspective.
Global BV News: Cost of capital parameters in Europe as of June 30, 2021
ValueTrust has released an eighth edition (dated June 30, 2021) of its “European Capital Market Study” that serves as a comprehensive compilation of capital market parameters such as cost of capital and implied as well as historical risk premiums for European countries.
Global BV News: Framework proposed for cross-border DCF valuations
A paper in the Journal of Business Economics presents a comprehensive framework to cross-border discounted cash flow valuation, something that “has not yet been proposed,” says the author, Andreas Schüler (Bundeswehr University Munich).
Global BV News: Global valuers challenged by lack of data
A lack of empirical data on small private companies outside the U.S. makes valuations challenging.
Updated research on MRP and risk-free rates used globally
The average required return on equity used for the U.S. is 7.3%, according to “Market Risk Premium and Risk-Free Rate Used for 88 Countries in 2021,” the latest research from Pablo Fernandez, Sofia Bañuls, and Pablo Fernandez Acin.