Kroll U.S. Cost of Capital Navigator

Includes three datasets that can be used to develop, augment and support your own custom analyses: (i) U.S. Cost of Capital Inputs, (ii) U.S. Industry Benchmarking and (iii) U.S. Company-level Betas.

Publisher: Kroll

Detailed Description

Cost of Capital Navigator includes three datasets that can be used to develop, augment and support your own custom analyses: (i) U.S. Cost of Capital Inputs, (ii) U.S. Industry Benchmarking and (iii) U.S. Company-level Betas.

U.S. Cost of Capital Inputs

The U.S. Cost of Capital Inputs dataset provides size premia, risk premia, equity risk premia, risk-free rates, betas and industry risk premia that can be used to estimate U.S. cost of capital, with data going back to 1999. Our tool guides users step-by-step through the process of estimating U.S. cost of capital, allowing either Kroll’s data or custom inputs to be incorporated into the analyses.

U.S. Industry Benchmarking

The U.S. Industry Benchmarking dataset provides U.S. industry-level inputs needed to estimate cost of capital and industry-level benchmarks that can be used to augment and support custom analyses. Comprehensive industry-level data and statistics are presented in a concise, consistent, and clear format for approximately 170 U.S. industries, with quarterly data going back to 2014.

U.S. Company-Level Betas

The U.S. Company-Level Betas dataset and tool provide users with the ability to identify and select their own peer group of individual companies within a subject industry for which a CAPM (Capital Asset Pricing Model) beta in needed. The dataset provides levered, unlevered, and relevered betas for those individual companies, with data going back to 2014. Users can select multiple companies using Kroll’s company look-up tool to calculate five different beta estimates and perform sensitivity analysis using different currencies, stock return frequencies, lookback periods, and market indices.

Key Features

U.S. Cost of Capital Inputs: Includes size premia, risk premia, equity risk premia, and industry risk premia dating back to 1999
U.S. Industry Benchmarking: Benchmarking and cost of capital inputs for around 170 industries with quarterly data since 2014
U.S. Company-Level Betas: Calculate betas using peer groups with multiple beta estimates and sensitivity analysis options

Video

Articles

Proper Adjustment of the Duff & Phelps ERP Adjustment

Can Duff & Phelps Be Applied to the Very Small Company?

The Litigating Valuation Analyst and the Duff and Phelps Risk Premium Report Size Study

For What It’s Worth: Dirty Harry and Business Valuation

Estimated Tax rates Embedded in Duff & Phelps

2011 Goodwill Impairment Study Duff & Phelps

For What Its Worth: Dirty Harry and Business Valuation

New from Duff & Phelps

Goodwill Impairment Study 2015

Book Review A Consensus View Q&A Guide to Financial Valuation

Should Business Appraisers Normalize Long-Term Treasury Rates When Building Equity Discount Rates?

How Not to Use Duff & Phelps Data

Common Sense, Simplicity, and

Equity Size Premium

Issues in Estimating

StraightTalk Webinar Series

Best Practices for Estimating the Company-Specific Risk Premium

Business Valuations

Cost of Capital Update: Ibbotson and Duff & Phelps 2013

Cost of Capital: Comparisons of Ibbotson and Duff & Phelps Data Inputs in the MCAPM and BUM

The Duff & Phelps Equity Risk Premium and Risk-free Rate Recommendation

An Overview of the Duff & Phelps 2014 Valuation Handbook – Guide to Cost of Capital

Twenty Ways to Calculate the Cost of Equity Capital: A Case Study

What’s New? Duff & Phelps 2015 Valuation Handbook

Best Practices in Cost of Equity Capital: The Build-Up Model: A Simpler Approach

Sources of Cost of Equity Data: New versus Old

An In-Depth Look at the New D&P Valuation Handbook

An In-Depth Review of the Duff & Phelps Risk Premium Calculator

Maximizing Value through the Integration of Transfer Pricing and Purchase Price Allocation

How Not to Use Duff & Phelps Data

Letters to the Editor

Thoughts on Duff & Phelps Normalizing Risk-Free Rate

Applying Duff & Phelps to The Very Small Company

Analyst develops a COVID-19 marketability discount

D&P/Kroll survey of cost of capital inputs

D&P/Kroll updates multiples in healthcare services

Eatery multiples in latest Duff & Phelps report

Global BV News: D&P’s valuation insights in China

Pro golfer values analyzed in Duff & Phelps/Kroll study

Application of Cost of Capital Data – An Update

FAQ

Data Source

Source:

The Kroll U.S. Cost of Capital Module, part of the Cost of Capital Navigator platform, compiles its data from a combination of proprietary research, historical financial market data, and publicly available sources. This module is designed to assist valuation professionals in estimating the cost of capital for U.S.-based companies.

1. Key Data Sources and Components

U.S. Cost of Capital Inputs:

Equity Risk Premium (ERP): Derived from historical analyses of equity returns over risk-free rates.
Size Premiums: Based on studies such as the CRSP Deciles Size Study and Kroll’s Risk Premium Report, which analyze the additional returns associated with investing in smaller companies.
Risk-Free Rates: Typically sourced from U.S. Treasury securities data.
Industry Risk Premia (IRP): Calculated using industry-specific betas and equity risk premiums.
Betas: Computed using various methodologies, including ordinary least squares (OLS) and adjusted models, based on historical stock return data.

2. U.S. Industry Benchmarking:

Provides industry-level data for approximately 170 U.S. industries, including:

Cost of equity, cost of debt, and weighted average cost of capital (WACC) estimates.
Performance statistics and ratio analyses.
Valuation multiples and capital structure inputs.
U.S. Company-Level Betas:
Offers betas for over 8,000 U.S. companies, allowing users to:
Select peer groups within specific industries.
Calculate levered, unlevered, and relevered betas.
Perform sensitivity analyses using different market indices and return frequencies.

Available from: BVDataWorld and KeyValueData