PORTLAND, Ore.--(Business Valuation Resources (BVR) is pleased to announce the availability of the highly-anticipated 2013 Duff & Phelps Risk Premium Report, which includes use of the groundbreaking tool, the Duff & Phelps Risk Premium Calculator.)--
“The Calculator adjusts the equity risk premium for the user, making it easier than ever to double-check internal calculations.”
Authored by Roger Grabowski and edited by James Harrington, the 2013 Report presents equity risk premia (ERPs) and size premia for 25 size-ranked portfolios using 8 alternative measures of company size. The 2013 Report expands the section on how to use the data for valuing very small companies. It lists the smallest and largest companies in “Portfolio 25” (the smallest category) for each of the eight size measures, thereby giving appraisers a greater capability to gauge the comparative size characteristics of his or her subject company and support any subsequent adjustments.
The Duff & Phelps Risk Premium Calculator is a web-based model in which users can enter 1-18 inputs and get an Executive Summary, an Excel spreadsheet, and an HTML package of results, which include four Cost of Equity (COE) estimates (one that is unlevered) and considers industry-specific risk. The Calculator also has built-in functionality that analyzes and reports on high financial risk companies – one of many features not available in any risk premium tool on the market.
“The 2013 Duff & Phelps Report and Calculator provide financial and valuation professionals the most defensible cost of capital data for use in determining equity risk and size premia,” Adam Manson, Manager of Financial Research at BVR, said. “The Calculator adjusts the equity risk premium for the user, making it easier than ever to double-check internal calculations.”
Groundbreaking features of the Calculator include:
- Built-in risk-free rate lookup – the Calculator finds the risk-free rate based on your valuation date
- The Calculator makes the equity risk premium adjustment – a crucial step often overlooked by valuation analysts
- Automatic output – COE for your subject company is calculated using up to five different methods, and a summary of the results is presented in an executive summary – a brief document that is editable and includes sourcing, inputs with definitions, and a concluded range of COE estimates for your subject company based upon your inputs
For more information, please contact Doug Twitchell at (503) 291-7963 or firstname.lastname@example.org.
About Business Valuation Resources, LLC (BVR)
Every top business valuation firm depends on BVR for authoritative market data, continuing professional education, and expert opinion. Our customers include business appraisers, certified public accountants, merger and acquisition professionals, business brokers, lawyers and judges, private equity and venture capitalists, owners, CFOs, and many others.