The Equity Risk Premium (ERP) is a key input used to calculate the cost of capital within the context of the Capital Asset Pricing Model (“CAPM”) and other models. Kroll regularly reviews fluctuations in global economic and financial market conditions that warrant a periodic reassessment of the ERP and the accompanying risk-free rate.
Kroll has published its United Kingdom and Canada normalized risk-free rates since 2014 and 2017 respectively.
Download a table summarizing the United Kingdom guidance for the period December 2014 – present.
Download a table summarizing the Canadian guidance for the period March 2017 – present.