Publications

Cost of Capital Resource Center

Kroll is the leading global independent valuation services provider 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.

  • Global Cost of Capital Inputs

Kroll Cost of Capital Inputs

Data as of September 18, 2023
Kroll Global Cost of Capital Inputs
 

 

Kroll 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.

Click here for the latest recommended U.S. guidance

Click here for the latest recommended Eurozone guidance

Click here for the latest recommended U.K. and Canada guidance

Frequently Asked Questions

Fixing Pricing Strategy to Drive Growth

Kroll Client Stories with Carla Nunes Play

Discover how Kroll engaged with the client's Board to explain the concepts and nuances of cost of capital so that they could pursue new deals and unlock growth.

Kroll's Cost of Capital (Valuation Digital Solutions) and Valuation Services teams recently came together for a company seeking to improve its approach to estimate cost of capital used in cross-border M&A pricing. Through our combined expertise, the client was able to get sound data and insights for quantifying risk globally and is now pursuing new deals to further strengthen its growth strategy.

Kroll Client Stories with Carla Nunes Play

Cost of Capital Insights: Impact of High Inflation and Market Volatility

Cost of Capital Insights: Impact of High Inflation and Market Volatility Play

Inflation readings continue to reach multi-decade highs across the globe. Listen to what our expert Carla Nunes has to say on latest market trends and what can be the focus areas moving forward.

Cost of Capital Insights: Impact of High Inflation and Market Volatility Play

Cost of Capital in the Current Environment

Cost of Capital in the Current Environment

Click here to view our Cost of Capital in the Current Environment – September, 2023

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 Kroll’s Global Cost of Capital Inputs: Recommended Equity Risk Premium and accompanying Normalized Risk-Free Rate.

See All Cost of Capital infographics

Cost of Capital in the Current Environment

Click here to view our Cost of Capital in the Current Environment – September, 2023

Portfolios With Better MSCI ESG Ratings Earned Higher Average Returns Globally - Download ESG and Global Investor Returns Study

ESG and Global Investor Returns Study

Kroll examined the relationship between historical returns of over 13,000 publicly traded companies across a variety of geographies and industries and their ESG ratings to determine the correlation of ESG ratings to company performance.

Download the Study

ESG and Global Investor Returns Study
Webcasts and Videos

Subscription Products

U.S. Cost of Capital Module

U.S. Cost of Capital Module

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.

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U.S. Industry Benchmarking Module

U.S. Industry Benchmarking Module

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.

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International Cost of Capital Module

International Cost of Capital Module

Provides country risk premia, relative volatility factors, equity risk premia and international industry betas that can be used to estimate cost of capital globally.

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International Industry Benchmarking Module

International Industry Benchmarking Module

Provides global industry-level inputs needed to estimate cost of capital and global industry-level benchmarks that can be used to augment and support custom analyses.

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Company-Level Beta Module

Company-Level Beta Module

Company-Level Beta Module provides a simple tool and dataset that enables users to calculate levered, unlevered and relevered company-level betas.

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Stocks, Bonds, Bills, and Inflation® (SBBI®) Yearbook

The Stocks, Bonds, Bills, and Inflation® (SBBI®) Yearbook has been the definitive annual resource for historical U.S. capital markets data for over 30 years.

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Featured Insights

Survey Report Higher for Longer

Cost of Capital

Higher for Longer? Cost of Capital in the Current Environment

Survey Report: Higher for Longer? Cost of Capital in the Current Environment

Nov 29, 2023 On September 28, 2023, Kroll Managing Director Carla S. Nunes, CFA, and Director Jim Harrington hosted a webinar. Throughout the webinar, they polled the attendees on valuation and cost of capital-related topics, including the interaction between ESG factors and valuation. View our latest polling results.

Carla Nunes Interview AIRA Journal

Cost of Capital

Navigating the Uncertainty Around Cost of Capital and Valuation Assumptions

AIRA Journal: Navigating the Uncertainty Around Cost of Capital and Valuation Assumptions

Sep 12, 2023 In this AIRA Journal article, Kroll expert Carla Nunes analyzed the impact of COVID19, geopolitical tensions and high inflation on global financial markets. She also discussed the “higher-for-longer” interest rate environment and the growing specter of bankruptcy and restructuring activity.

Kroll Lowers Equity Risk Premium

Cost of Capital

Kroll Lowers Equity Risk Premium to 5.5

Kroll Lowers Equity Risk Premium to 5.5%

Jul 28, 2023 Our expert Carla Nunes was interviewed by CFO where she provided insights on various economic and financial market indicators used to estimate Kroll’s ERP recommendations.

Companies That Went Public via SPACs Log Billions of Dollars in Goodwill Write Downs

Cost of Capital

Companies That Went Public via SPACs Log Billions of Dollars in Goodwill Write-Downs

Companies That Went Public via SPACs Log Billions of Dollars in Goodwill Write-Downs

Feb 06, 2023 Kroll's Managing Director, Carla Nunes, was recently interviewed by the Wall Street Journal where she discussed how companies that completed SPAC mergers during the recent boom are now seeing their goodwill impaired.

Valuation Handbook International Guide COC 2022

Cost of Capital

Valuation Handbook International Guide COC 2022

Valuation Handbook – International Guide to Cost of Capital 2022 Summary Edition

Kroll and the CFA Institute Research Foundation are proud to have established a partnership in 2020. The goal of this collaboration is to create and disseminate data and content that are designed to help investment professionals and financial market participants make informed decisions. Read more.

Navigating the Uncertainty Around Cost of Capital and Valuation Assumptions

Cost of Capital

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

Navigating the Uncertainty Around Cost of Capital and Valuation Assumptions

Dec 12, 2022 Carla Nunes, Global Leader of the Valuation Digital Solutions (VDS) group at Kroll, draws on her cost of capital expertise to analyse the impact of COVID-19, geopolitical tensions and rising inflation on global financial markets and the outlook for businesses.

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