Cost of Capital Resource Center
U.S. ERP Recommendations | Infographics | Cost of Capital Products | Webcasts and Videos | Insights
From valuing individual securities or capital projects to evaluating M&A, estimating cost of capital is one of the most important decisions that corporate finance professionals make. Duff & Phelps is the leading global independent valuation services firm and a trusted expert on estimating cost of capital. For over 20 years, our professionals have published books, created studies, provided recommendations and built tools to help businesses and valuation professionals estimate cost of capital.
Duff & Phelps regularly hosts events and provides insights on current topics impacting cost of capital assumptions and demos of new products. Our thought leaders aim to help clients when estimating cost of capital. Explore their expert analysis and opinions on latest trends.
U.S. Equity Risk Premium Recommendations
Duff & Phelps regularly reviews fluctuations in the global economic and financial market conditions. These reviews warrant a periodic reassessment of the equity risk premium (ERP) and the accompanying risk-free rate and key inputs used to calculate the cost of equity capital in the context of the Capital Asset Pricing Model (CAPM) and other models used to develop discount rates.
Duff & Phelps U.S. Normalized Risk-Free Rate Lowered from 3.0% to 2.5%, Effective June 30, 2020
Cost of Capital in the Current Environment
COVID-19 has generated an unprecedented reaction in both financial markets and economies worldwide, and the resulting uncertainty highlights significant challenges in estimating the cost of capital inputs in the current environment. The infographic below tracks the impact of COVID-19 on some of the financial market and economic indicators used to support the Duff & Phelps recommended U.S. Equity Risk Premium and accompanying Normalized Risk Free-Rate.
Cost of Capital in the Current Environment
Covid-19 Update – November 13, 2020
Cost of Capital Navigator
The Duff & Phelps Cost of Capital Navigator is an online platform that guides you through the process of estimating the cost of capital, a key component of any valuation analysis. You can subscribe to any or all four cost of capital modules, each offering three annual subscription levels–Basic, Pro and Enterprise. Additional products offered by Duff & Phelps include the annual Stocks, Bonds, Bills and Inflation® (SBBI®) Yearbook which provides historical U.S. capital markets data.
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Carla Nunes
Managing Director
Business Valuation and Appraisals
Philadelphia
Carla Nunes
James P. Harrington
Director
Valuation Services
Chicago
James P. Harrington
Roger Grabowski
Managing Director
Business Valuation and Appraisals
Chicago
Roger Grabowski
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Provides an array of consulting services to alternative investment managers and investors.