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.
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
Fixing Pricing Strategy to Drive Growth
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.
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.
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.Subscribe now
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.Subscribe now
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.Subscribe now
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.Subscribe now
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.Subscribe now
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.Subscribe now
Cost of Capital
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.
Cost of Capital
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.
Cost of Capital
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.