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.
Kroll Cost of Capital Inputs
Data as of October 18, 2022
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 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.
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
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 Nunes, James P. Harrington, Anas Aboulamer, Roger 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.
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.