Cost of Capital Resource Center

Kroll is the leading global independent valuation services provider and a trusted expert on estimating cost of capital.

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. 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.

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.


Kroll Cost of Capital Inputs

Data as of October 18, 2022
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

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

Cost of Capital in the Current Environment – October, 2022

Cost of Capital in the Current Environment

Click here to view all Cost of Capital infographics.

Cost of Capital Navigator

The Kroll 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 Kroll include the annual Stocks, Bonds, Bills and Inflation® (SBBI®) Yearbook which provides historical U.S. capital markets data.

Easily Estimate the Cost of Capital

Webcast Replay


Webcast Replay – Cost of Capital in the Current Environment

Sep 28, 2022

Webcast Replay


Current ESG Landscape: Investor versus Company Perspectives

Mar 25, 2022

Play

Webcast Replay


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

May 20, 2021

Webcast Replay


International Cost of Capital – Understanding and Quantifying Country Risk

Nov 09, 2020

Webcast Replay


Coronavirus – Cost of Capital Considerations in the Current Environment

Apr 29, 2020

Webcast Replay


Introducing Cost of Capital Navigator - International Cost of Capital Module

Jan 22, 2020

Kroll regularly hosts events and provides insights on current topics impacting cost of capital assumptions. We aim to help clients when estimating cost of capital. Explore our expert analyses and opinions on latest trends.

Insights

Cost of Capital


Impact of the Russia-Ukraine Conflict on Country Risk Assumptions

May 06, 2022

by Carla NunesJames P. Harrington

Cost of Capital


Kroll Recommended Eurozone Equity Risk Premium and Corresponding Risk-Free Rates to be Used in Computing Cost of Capital: December 2019 – Present

Oct 18, 2022

by Carla NunesJames P. HarringtonAnas Aboulamer

Cost of Capital


Kroll Recommended U.S. Equity Risk Premium and Corresponding Risk-Free Rates to be Used in Computing Cost of Capital: January 2008 - Present

Oct 18, 2022

by Carla NunesJames P. HarringtonAnas AboulamerRoger J. Grabowski, FASA

Wall Street Journal


Carla Nunes shares insights on U.S. Goodwill Impairment trends for 2022

Apr 01, 2022 - As companies face more economic uncertainty as a result of the war on Ukraine, Kroll Institute Fellow and Managing Director Carla Nunes shares her outlook on the current state of U.S. goodwill impairments.

Valuation


Cost of Capital Key Achievements in 2021

Valuation


Valuation Insights – Third Quarter 2022

Sep 29, 2022

Connect with us

Carla Nunes
Carla Nunes
Managing Director
Valuation Advisory Services
Philadelphia
Phone
JamesP Harrington
James P. Harrington
Director
Valuation Services
Chicago
Phone
Kevin Madden
Kevin Madden
Director
Valuation Advisory Services
Chicago
Phone
Anas Aboulamer
Anas Aboulamer
Director
Valuation Advisory Services
Toronto
Phone
Roger Grabowski
Roger J. Grabowski, FASA
Managing Director
Valuation Advisory Services
Chicago
Phone

Cost Of CapitalCost of Capital Products

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.

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.

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.

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.

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.