Duff & Phelps is now providing the data previously in the SBBI Valuation Yearbook, as well as data from the Risk Premium Report, in this new handbook – all to help you estimate the cost of equity capital for a subject company.
This Valuation Handbook contains all of the “key variables in estimating the cost of capital,” including:
Long-term (20-year) U.S. Treasury Coupon Bond Yield
Size premia for the breakdown of CRSP Decile 10 into 10a (and its subdeciles 10w and 10x) and 10b (and its subdeciles 10y and 10z)
Industry Risk Premium
Industry risk premia (IRPs) for use in the build-up method (previously found in Table 3-5 in the SBBI Valuation Yearbook).
This Valuation Handbook also includes all of risk premia and size premia (for up to eight different measures of “size”) previously published in the Duff & Phelps Risk Premium Report, including:
Analyzes the relationship between equity returns and company size, using up to 8 measures of company size (market value of common equity, book value of common equity, 5-year average net income, market value of invested capital (MVIC), total assets, 5-year average EBITDA, sales, and number of employees).
Analyzes the relationship between equity returns and accounting-based fundamental risk measures
Analyzes the relationship between equity returns and high-financial-risk, as measured by the Altman z-Score.
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