Damodaran posts 2019 edition of ERP paper
The “dean of valuation,” Professor Aswath Damodaran (New York University Stern School of Business) has posted “Equity Risk Premiums (ERP): Determinants, Estimation and Implications—The 2019 Edition.”
Participate in BVWire’s cost of capital surveys
BVWire is a conducting a series of short surveys to investigate how appraisers derive cost of capital in their valuations of private companies.
Industry betas now included in CCPro platform
Users of BVR’s new Cost of Capital Professional (CCPro) platform now have the choice of two sources of industry betas to help in estimating the industry risk premium (IRP) component of the buildup method for developing the cost of capital for a private company.
Two Articles Addressing Firm Quality and Its Impact on the Size Effect
The authors discuss two recent papers that present the concept of firms’ quality and show that it plays an important role in understanding the size effect. Also discussed are papers that present a differing view.
No End in Sight to Size Effect Debate
A look at several recent articles on the so-called size premium that perpetuate the debate on this topic. Some appraisers feel that the size effect has diminished or disappeared since it was first documented in 1981, while others feel it is alive and well.
BVU News and Trends May 2019
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends April 2019
A monthly roundup of key developments of interest to business valuation experts.
Latest paper on the vanishing size effect
A new academic paper, “Why Has the Size Effect Disappeared?,” explores the disappearance of the small-firm effect after the early 1980s.
Do you have a Rube Goldberg cost of capital process?
Wildly complicated gadgets designed to do very simple tasks was the specialty of Rube Goldberg, the Pulitzer Prize-winning cartoonist, sculptor, author, engineer, and inventor.
Upgrade to the Cost of Capital Professional highlights free webinar
A number of new enhancements to BVR’s Cost of Capital Professional platform were explained during a recent free webinar on March 6.
BVU News and Trends March 2019
A monthly roundup of key developments of interest to business valuation experts.
Bygone size effect resurfaces in highly volatile times, per new research
Although most empirical studies find that the size effect has disappeared since the early 1980s, it shows up during times of high macroeconomic volatility, according to a new paper.
YE2018 data—plus enhancements—now in the Cost of Capital Professional
Year-end 2018 equity risk premia and size premia are now available in BVR’s Cost of Capital Professional platform.
Letter to the Editor: Comments on the Cost of Capital Professional
A user who tested out BVR’s new platform for estimating the cost of capital has some very thought-provoking comments on the use of historical data for the equity risk premium.
Response to Eric Nath’s Comments on the Cost of Capital Professional
Comments in response to the need to develop a “truly forward-looking required rate of return system that gives appraisers an understanding of how to estimate cost of capital for private companies and interests in private companies.”
Damodaran posts his 2019 data updates
Professor Aswath Damodaran (New York University Stern School of Business) has so far posted a series of five data updates on his blog, “Musings on Markets.”
Business Valuation Review spotlights the ‘size effect’
If you’re a subscriber to BVResearch Pro, you have access to a vast amount of research material, including the full archive of Business Valuation Review, the journal of the American Society of Appraisers (ASA).
Improving on historical data for the cost of capital
There are shortcomings to using historical data in developing an equity risk premium (ERP) when estimating the cost of capital, points out Eric Nath (Eric Nath & Associates LLC) in the February issue of Business Valuation Update.
Business Valuation Year in Review 2018
The new tax law, lively debates, new guidance, a strong protest, and a simpler approach to estimating cost of capital were just some of the highlights in the business valuation profession during 2018.
Takeaways From the 2018 ASA Advanced BV Conference
A wrap-up of the ASA’s Joint ASA 2018 Advanced Business Valuation and International Appraisers Conference in Anaheim, Calif.
BVR’s New Cost of Capital Platform Makes Its Public Debut
A record-setting audience of valuation experts got the first look at BVR’s new simple, independent service to estimate the cost of capital. The online platform is designed to augment each appraiser’s own professional judgment and his or her other research.
BVU News and Trends January 2019
A monthly roundup of key developments of interest to business valuation experts.
2018 Key Business Valuation and Damages Cases
Choices for the most interesting and pivotal court cases of 2018 involving business valuation issues.
Don’t be locked into a start year for historical returns
During a recent demo of BVR’s new Cost of Capital Professional, an audience member asked whether he could choose the starting year used to calculate the historical equity risk premium and historical size premium.
Free trial expires soon for new cost of capital platform
Have you had a chance to test drive BVR’s Cost of Capital Professional (CCPro)?