Cost of Capital

Accurate risk assessment is vital in any financial analysis.  BVR offers best-in-class tools for determining cost of capital and quantifying risk to enhance every aspect of your work – at the highest quality possible.

Guides & Books

2016 International Valuation Handbook: Guide to Cost of Capital

August 2016

The 2016 International Valuation Handbook - Guide to Cost of Capital provides data and methodology guidance that will enable the reader to assess risk and develop cost of capital estimates on a global scale, coupled with data exhibits that provide country-level country risk premia (CRPs), Relative Volatility (RV) factors, and equity risk premia (ERPs).  Learn more >>

2016 International Valuation Handbook: Industry Cost of Capital

August 2016

The 2016 International Valuation Handbook - Industry Cost of Capital offers the same type of rigorous industry-level analysis published in the U.S.-centric Valuation Handbook - Industry Cost of Capital. It provides industry-level cost of capital estimates (cost of equity, cost of debt, and weighted average cost of capital, or WACC), plus detailed industry-level statistics for sales, market capitalization, capital structure, various levered and unlevered beta estimates (e.g., ordinary-least squares (OLS) beta, sum beta, peer group beta, downside beta, etc.), valuation (trading) multiples, financial and profitability ratios, equity returns, aggregate forward-looking earnings-per-share (EPS) growth rates, and more. Learn more >>

2016 Stocks, Bonds, Bills, and Inflation (SBBI) Yearbook

August 2016

The 2016 Stocks, Bonds, Bills, and Inflation (SBBI) Yearbook is the industry standard performance data reference, with comprehensive records dating back to 1926. Covering common stocks, long-term government bonds, long-term corporate bonds, Treasury bills, and the Consumer Price Index, this book provides the essential information advisors, planners, and brokers need to analyze asset class performance.  Learn more >>

2016 Valuation Handbook - Industry Cost of Capital

June 2016

The 2016 Valuation Handbook  Industry Cost of Capital provides valuation professionals with the same type of rigorous industry-level analysis previously published in the green-cover Morningstar/Ibbotson Cost of Capital Yearbook (now discontinued). Using the most recent, up-to-date data is critical. This resource provides current data, updated annually (with data through March). Learn more >>

2016 Valuation Handbook - Guide to Cost of Capital

March 2016

The 2016 Valuation Handbook - Guide to Cost of Capital, authored by Duff & Phelps, includes both the ERP data available in the Duff & Phelps Risk Premium Report, and picks up where the previous SBBI Valuation Edition left off, with new features, tools, and analysis. Learn more >>

A Consensus View: Q&A Guide to Financial Valuation 2016 edition

March 2016

In A Consensus View Q&A Guide to Business Valuation, Jim Hitchner, Shannon Pratt, and Jay Fishman answer over 150 of the most important business valuation questions they’ve been asked over the years. Each year, new chapters will be added and existing chapters will be updated.  Learn more >>

Business Valuation Yearbook 2016

February 2016

Keep up with business valuation’s most innovative approaches and techniques, new court decisions, and regulatory and professional standards updates. BVR has you covered with the Business Valuation Update Yearbook 2016. This newest edition from the publishers of Business Valuation Update covers the year’s most groundbreaking and thought-provoking advancements Learn more >>

BVR Legal and Court Case Yearbook 2016

February 2016

The BVR Legal and Court Case Yearbook 2016 is essential for business appraisers and attorneys who want to stay ahead of their peers on the most important legal issues confronting business valuation. With in-depth analysis from BVR’s legal team, the lessons learned in this book help appraisers come to better and more defensible valuation conclusions. Learn more >>

2015 International Valuation Handbook - Guide to Cost of Capital

June 2015

The 2015 International Valuation Handbook-Guide to Cost of Capital, authored by Duff & Phelps, is a must-have publication that includes data through December 2014 and March 2015 and builds on the same rigorous country-level cost of capital analysis previously published in the Morningstar/Ibbotson “international” reports. Learn more >>

2015 International Valuation Handbook: Industry Cost of Capital

June 2015

2015 International Valuation Handbook—Industry Cost of Capital is the essential reference for valuation professionals, providing country-level cost of equity capital estimates for many regions. Updated annually by the valuation experts at Duff & Phelps, this authoritative guide allows quick access to the data and adjustable capital models required to accurately determine company risk. Learn more >>

Business Valuation Update Yearbook 2015

February 2015

BVR has you covered with the latest news in the business valuation profession! Get your Business Valuation Update Yearbook 2015 now to stay up to date with the most innovative approaches and techniques, leading conferences, new court decisions and changes in regulations and standards in the profession with on-the-ground reporting from valuation experts, thought-leaders and the BVR editorial team. Learn more >>

BVR Legal and Court Case Yearbook 2015

February 2015

The BVR Legal and Court Case Yearbook 2015 is essential for business valuation professionals and attorneys to stay current on the most important legal issues confronting the profession. The Yearbook covers marital disputes, breach of contract actions, damages, dissenting shareholder disputes, estate and gift tax cases, federal taxation, intellectual property cases, bankruptcy litigation, and more. Learn more >>

2014 Valuation Handbook - Industry Cost of Capital

October 2014

The 2014 Valuation Handbook - Industry Cost of Capital with data through March 2014, provides the same rigorous industry-level analysis previously published in the green-cover Morningstar/Ibbotson Cost of Capital Yearbook. Learn more >>

Cost of Capital: Applications and Examples PLUS Website, Fifth Edition

April 2014

Completely revised for this highly anticipated fifth edition, Cost of Capital contains expanded materials on estimating the basic building blocks of the cost of equity capital, the risk-free rate, and equity risk premium. There is also discussion of the volatility created by the financial crisis in 2008... Learn more >>

Understanding Business Valuation: A Practical Guide to Valuing Small- to Medium-Sized Businesses, 4th edition

September 2012

Written by Gary Trugman, Understanding Business Valuation: A Practical Guide to Valuing Small-to Medium-Sized Businessessimplifies a technical and complex area of practice with real-world experience and examples. Trugman's informal, easy-to-read style covers all the bases in the various valuation approaches, methods, and techniques.  Learn more >>

Cost of Capital in Litigation: Applications and Examples

September 2010

Cost of Capital in Litigation addresses cost of capital issues in litigation and discusses major decisions, highlighting how to avoid errors that have often been made by experts. The book helps the attorney and valuation expert understand the decisions within the context of the theory of cost of capital. Learn more >>

Valuing a Business: The Analysis and Appraisal of Closely Held Companies, 5th Ed.

January 2008

Since the first edition was published in 1981, the profession of business appraisal has matured immensely. The IRS has come out with business valuation guidelines, and the AICPA has published their business valuation standards. While each organization’s standards or guidelines are slightly different from the others, there is unanimous agreement on the central concepts of business valuation.  Learn more >>

2015 Valuation Handbook - Guide to Cost of Capital

The 2015 Valuation Handbook - Guide to Cost of Capital, authored by Duff & Phelps, replaces the discontinuedSBBI Valuation Edition and the Duff & Phelps Risk Premium Report. The Valuation Handbook includes both the ERP data available in the Duff & Phelps Risk Premium Report, and picks up where the previous SBBI Valuation Edition left off, with new features, tools, and analysis.  Learn more >>

2015 Valuation Handbook - Industry Cost of Capital

The 2015 Valuation Handbook- Industry Cost of Capital includes cost of capital estimates (equity capital, debt capital, and WACC) for over 200 U.S. industries, plus a host of detailed statistics that can be used for benchmarking purposes. It is an excellent way to support and augment the financial analyst's own custom analysis of the industry in which the subject business, business ownership interest, security, or intangible asset resides. Learn more >>
Training

Forecasting Cost of Capital in Healthcare Valuations

Deal & Market Data

Risk-Free Rate ToolRisk-Free Rate Tool

The risk-free rate is generally a rate available on instruments considered to have virtually no possibility of default, such as U.S. Treasury obligations. Using the latest data from the Federal Reserve Board, the BVR Risk-Free Rate Lookup provides nine risk-free rates commonly used to develop a discount rate.

Butler Pinkerton Calculator - Total Risk Allocator

The Butler Pinkerton Calculator (BPC) offers empirical data for total cost of equity (TCOE) and company-specific risk premiums (CSRP) – a first for the business valuation profession.  Learn more >>

Valuation Handbook Risk Premium Toolkit

Designed by Roger Grabowski and James Harrington, the Risk Premium Toolkit is a web-based model that offers defensible cost of capital measures, particularly for small target companies. Users can perform a calculation based on risk premium report data or CRSP deciles data. Learn more >>

Implied Private Company Pricing Line Tool (IPCPL)

A contentious subject in business valuation is the cost of capital estimation of a small privately held business by using data from publicly traded equity securities. Using the traditional approach, different appraisers analyzing the same firm using the same data sources can easily arrive at vastly different cost of capital estimates. The Implied Private Company Pricing Line (IPCPL) approach is designed to eliminate the inherent problems in comparing public and private data and to add another approach in estimating the cost of capital for a privately held business. Learn more >>
News & Research

Business Valuation Update

The Business Valuation Update (BVU), a monthly newsletter with searchable online access, includes new thinking from leading professionals, detailed reports from valuation conferences, analysis of new business valuation approaches, thorough analysis of “landmark” legal cases in key business valuation issues, regulatory and standards updates, and much more. Learn more >>

BVLaw

Attorneys and appraisers alike turn to the exclusive BVLaw collection of 3,700+ cases and case digests concerning business valuation issues including economic damages, lost profits, estate and gift tax, divorce, shareholder repression, partnership dissolution, securities litigation - and more. Learn more >>
Blog Posts

Brexit's impact on cost of capital

The Brexit vote reinforces the need for internal consistency between the elements of cost of capital and the current economic environment, according to leading global valuation experts and finance professors. Also, there may be a “new normal” in terms of interest rates, risk premiums, and growth. Read more >>