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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.

2020 was a challenging year as COVID-19 uprooted the world economy and precipitated a global economic slowdown. Duff & Phelps, A Kroll Business, continued to provide clarity to businesses and professionals on cost of capital matters with our Cost of Capital Navigator platform. We also delivered frequent insights from our thought leaders in this defying environment.

We look back at some of our major cost of capital accomplishments in 2020 here.

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 Recommended U.S. Equity Risk Premium Decreased from 6.0% to 5.5%, Effective December 9, 2020

View historical equity risk premium recommendations

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 – January 21, 2021

Cost of Capital in the Current Environment

Click here to view all Cost of Capital infographics.

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.

COVID-19 One Year Later – Impact on Cost of Capital and Related Valuation Issues

COVID-19 has had a profound and ongoing impact on financial markets and economies around the world. Join Carla S. Nunes and James P. Harrington of Duff & Phelps, A Kroll Business, on Thursday, May 20 at 11:30 a.m. ET for a global webcast where they will discuss COVID-19’s impact on global financial markets and cost of capital assumptions one year after the outbreak.

Cost of Capital Products

LIBOR Update

Nearly Half of Firms Recently Surveyed Still Do Not Have LIBOR Transition Plans in Place

LIBOR Update
M&A Advisory

European Chemicals Update – Q1 2021

M&A Advisory
Valuation

Business Valuation Survey Report 2020

Valuation
Transfer Pricing

Planning for a Successful Transition of Intercompany Libor Positions

Transfer Pricing

Insights

LIBOR Update

Nearly Half of Firms Recently Surveyed Still Do Not Have LIBOR Transition Plans in Place

LIBOR Update
M&A Advisory

European Chemicals Update – Q1 2021

M&A Advisory
Valuation

Business Valuation Survey Report 2020

Valuation

Insights

Valuation

Cost of Capital Key Achievements in 2020

Valuation
Valuation

Duff & Phelps 2021 SBBI® Yearbook

Valuation
Cost of Capital

Duff & Phelps Recommended U.S. Equity Risk Premium Decreased from 6.0% to 5.5%, Effective December 9, 2020

Cost of Capital
LIBOR Update

Nearly Half of Firms Recently Surveyed Still Do Not Have LIBOR Transition Plans in Place

LIBOR Update
M&A Advisory

European Chemicals Update – Q1 2021

M&A Advisory
Valuation

Business Valuation Survey Report 2020

Valuation

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Objective valuations for financial reporting, tax and management planning purposes.

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