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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.

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

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 – November 13, 2020

Cost of Capital Infographic October 2020

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.

 

Cost of Capital Products

Valuation

Industry Multiples India Report – 12th Edition

Valuation
M&A Advisory

European Chemicals Update – Q4 2020

M&A Advisory
M&A Advisory

Special Purpose Acquisition Companies (SPAC) Market Report – Fall 2020

M&A Advisory

Insights

Valuation

Industry Multiples India Report – 12th Edition

Valuation
M&A Advisory

European Chemicals Update – Q4 2020

M&A Advisory

Insights

Valuation

Duff & Phelps 2020 SBBI® Yearbook

Valuation
Cost of Capital

Roger Grabowski Shares Takeaways From His Presentation at OIV Conference in Milan

Cost of Capital
Valuation

Industry Multiples India Report – 12th Edition

Valuation
M&A Advisory

European Chemicals Update – Q4 2020

M&A Advisory
M&A Advisory

Special Purpose Acquisition Companies (SPAC) Market Report – Fall 2020

M&A Advisory

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Other Areas We Can Help

Valuation Services

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

Valuation Services

Alternative Asset Advisory

Provides an array of consulting services to alternative investment managers and investors.

Alternative Asset Advisory