Grabowski on Using Academic Research to Back Up CSRP Estimates
Roger Grabowski, managing director (ret.) at Kroll, discusses the company-specific risk premium (CSRP) and how academic research can strengthen estimates and withstand challenges that the numbers are just picked out of the air.
Research Update: Recap of Research Papers on Assessing Company Risk
A listing of research papers and sources cited by Roger Grabowski, managing director (ret.) at Kroll, that are helpful in substantiating otherwise subjective estimates in business valuations, especially in the estimation of company-specific risk.
New survey reveals challenges of reflecting ESG in valuation
The most frequently cited challenge to the integration of environmental, social, and governance (ESG) considerations in valuations is the lack of standardized metrics for measuring ESG impacts.
Now open: Pepperdine’s 2025 private cost of capital survey
Each year, Pepperdine University conducts a survey of expected rates of return with respect to private companies.
Year-end 2024 data now live in BVR’s CCPro
Year-end 2024 data, including equity risk premia, CRSP decile size premia, and industry betas/IRPs, are now available in BVR’s Cost of Capital Professional platform.
Update on Incorporating ESG Factors Into a Business Valuation
There is a great deal going on with environmental, social, and governance (ESG) matters, including new regulatory and disclosure requirements, research studies, and guidance on integrating ESG factors into business valuations. This was all discussed during a recent BVR webinar with Carla Nunes (Kroll) and Nene Gianfala (Chaffe & Associates), who gave a comprehensive picture of the current ESG landscape and the impacts on valuation.
Polls examine cost of capital methodologies and practice
During BVR’s recent Cost of Capital Virtual Conference, several poll questions were asked. Here are the results from the rest of the questions that were asked.
Damodaran posts his first data update for 2025
At the beginning of each year, Professor Aswath Damodaran (New York University Stern School of Business) generously posts a great amount of data on his website that include risk-free rates, equity risk premiums (ERPs), corporate default spreads, corporate tax rates, country risk premiums, and other data—all of which are free.
Poll reveals methods and data sources for ERP
The Kroll Cost of Capital Navigator continues to be widely used and accepted for estimating cost of equity (COE), per the results of a poll during BVR’s recent Cost of Capital Virtual Conference.
A Pepperdine first: PE multiples up, VC down
“There’s something this year that I’ve never seen before” about private equity and venture capital multiples, remarked Dr. Craig Everett, project director of the Pepperdine Private Capital Markets Project.
Tomorrow! BVR’s Cost of Capital Virtual Conference
Tune in tomorrow, January 16, for BVR’s live virtual conference devoted to the cost of capital.
Next week: BVR’s Cost of Capital Virtual Conference
Mark down January 16 on your calendar for BVR’s live virtual conference devoted to the cost of capital.
Global BVU News and Trends December 2024
Business valuation news from a global perspective.
Grabowski gives update on company-specific risk guidance
At the NACVA 2024 Business Valuation & Financial Litigation conference last week in Las Vegas, Roger Grabowski, now retired from Kroll, gave an update on the upcoming valuation advisory from The Appraisal Foundation that will address the complex and often contentious topic of company-specific risk premiums (CSRP).
Kroll report emphasizes the importance of streaming in sports
A recent report from Kroll examines the business of sports and, in particular, the success of the NFL, and emphasizes the importance of streaming.
Letter to the Editor: Feedback on Paper Concerning Company-Specific Risk
Comments on a recent research paper as it relates to total beta and the Butler Pinkerton Calculator.
Global: KPMG’s new cost of capital study examines the ‘new dilemma’
KPMG has published its “Cost of Capital Study 2024” with the theme: “The New Dilemma: Balancing Interest Rates and Growth,” which is the 19th edition of this study.
The Continuing Evolution of the BUM
The author provides some very interesting reflections and perspectives, drawn from over 40 years of experience, and brings us up to date on this long-lasting method.
Valuation Report Excerpts Using Pepperdine to Estimate a Discount Rate
Sample language adapted from actual valuation reports using information from Pepperdine’s “2024 Private Capital Markets Report” to estimate cost of capital for a small business, including an adjustment for company-specific risk.
BV News and Trends August 2024
A monthly roundup of key developments of interest to business valuation experts.
Global BVU News and Trends August 2024
Business valuation news from a global perspective.
Retain Professional Judgment in Your Cost of Equity Estimates
Amid the barrage of emerging technology, artificial intelligence, and automated valuation models, there is a concern in the profession about the “black box” phenomenon of using these tools. Dr. Michael Crain (Florida Atlantic University), the author of the Cost of Capital Professional platform, talks about this with Ron Seigneur (Seigneur Gustafson LLP) during a demo of the platform.
RESEARCH UPDATE: Monthly Recap of Research Papers July 2024
The featured paper is “Beyond Subjective Weights—Risk Aware Reporting of Valuation Results for a Privately Held Business” by Mikhail Munenzon (InteleK Business Valuation & Advisory). Other papers of interest to valuation experts cover topics including ERPs and risk-free rates, valuation of data assets, quantitative disclosures and risk, and the impact of founder-family succession on firm value.
BV News and Trends July 2024
A monthly roundup of key developments of interest to business valuation experts.
Global BVU News and Trends July 2024
Business valuation news from a global perspective.