Damodaran: Discount Rates and Betas
Open-access datasets and tools for estimating discount rates, industry betas, and cost of capital metrics
Open-access datasets and tools for estimating discount rates, industry betas, and cost of capital metrics
Renowned valuation expert Aswath Damodaran provides open-access datasets and tools for estimating discount rates, industry betas, and cost of capital metrics used by professionals and academics worldwide.
Publisher: NYU Stern School of NYU Stern School of Business.
Hosted by NYU Stern Professor Aswath Damodaran, this resource offers comprehensive data on risk-free rates, equity risk premiums, industry and company-specific betas, cost of equity, and capital structure metrics. The data spans global markets and is updated regularly to reflect current economic and market conditions. Damodaran’s site is widely regarded for its transparency and educational value, providing downloadable Excel files, valuation models, and tutorials. It serves as a critical resource for finance professionals conducting valuations, corporate finance analyses, or academic research.
Key Features
Source:
The data for Damodaran: Discount Rates and Betas, provided by Professor Aswath Damodaran of NYU Stern School of Business, comes from a combination of publicly available financial sources and proprietary calculations. Here’s a detailed breakdown:
Primary Data Sources for Discount Rates and Betas
1. Market and Financial Data Providers
Damodaran’s calculations use publicly available and subscription-based market data from sources such as:
2. Company Financial Statements
3. Equity Market Indices
Betas are calculated relative to broad market indices such as:
Calculation Methodology
Discount Rates:
The risk-free rate typically comes from current government bond yields (e.g., 10-year U.S. Treasury).
The equity risk premium (ERP) is based on Damodaran’s own implied and historical ERP models, which use:
Betas:
Unlevered and levered betas are calculated using:
Global Coverage
Damodaran provides betas, risk premiums, and discount rate inputs for:
These estimates are widely used for academic research, business valuation, and corporate finance modeling.
Data Source | Role |
---|---|
Bloomberg, S&P, Yahoo Finance | Market prices, returns, company financials |
Government bond markets | Risk-free rate inputs |
Public company financial filings | Revenue, capital structure, financial ratios |
Equity market indices | Benchmark for beta calculation |
Proprietary Damodaran models | Implied ERP and industry beta adjustments |
You can access Aswath Damodaran’s datasets, models, and valuation resources for free on his official NYU Stern School of Business faculty webpage.
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