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Valuation Handbook Risk Premium Toolkit

Designed by Roger Grabowski and James Harrington, the Valuation Handbook — Risk Premium Toolkit is a web-based model that offers defensible cost of capital measures, particularly for small target companies. Users can perform a calculation based on risk premium report data or CRSP* deciles data.

Each calculation instantly delivers a fully customizable “Executive Summary” in Microsoft Word format that includes sourcing, key inputs, and a concluded range of cost of equity capital estimates using both the buildup and CAPM methods. The Toolkit also delivers historical equity risk premiums (ERPs) and size premiums for 25 size ranked portfolios using 8 alternative measures of company size. With the robust built-in functionality, you can analyze and report on high financial risk companies – one of many benefits not available in any risk premium tool on the market. See what others are saying about the Toolkit

BONUS! Now a subscription to the Valuation Handbook — Risk Premium Toolkit includes a print copy of the 2016 Valuation Handbook - Guide to Cost of Capital (available in March 2016 - 2016 Handbook data currently available in Toolkit) and three quarterly dataset updates (delivered via PDF) of industry risk premiums for use in the build-up method (a $460 value!). Learn about this must-have resource that includes both the ERP data available in the previous Duff & Phelps Risk Premium Report, as well as all of the critical year-end data that was previously available in the SBBI Valuation Yearbook. Learn more

SUBSCRIBE to the Valuation Handbook — Risk Premium Toolkit- $669.00/year
(Includes print copy of the 2016 Valuation Handbook Guide to Cost of Capital (available March 2016), three quarterly dataset updates delivered via PDF, and Duff & Phelps Update quarterly email with tips and timely news. 2016 Handbook data now available in Toolkit.)


View Sample Risk Premium Report Data Executive Summary | View Sample Executive Summary CRSP Deciles Data | FAQs | Download free webinar on using the Toolkit (formerly Calculator) data

Benefits of the Valuation Handbook Risk Premium Toolkit include:

  • Includes two essential sets of valuation data: the CRSP Size Study (the data previously available in the Morningstar/Ibbotson SBBI Valuation Yearbook), and the Duff & Phelps Risk Premium Study

  • Automatic output — COE for your subject company is calculated using up to five different methods, and a summary of the results is presented in an “Executive Summary” in Microsoft Word format, plus a detailed, auditable, record of all inputs, outputs, and calculations in Microsoft Excel workbook format
  • Built-in risk free rate lookup — no need to retrieve the rate yourself, the Toolkit finds it for you based on your valuation date

  • Equity risk premium adjustment (a.k.a. market risk premium) — the Toolkit makes this adjustment, a crucial step often overlooked by valuation analysts

  • Time-saving and user-friendly — user experience is easy, while at the same time maintaining the same analytical horsepower of the Duff & Phelps report "under the hood"

  • Print copy of the 2016 Valuation Handbook - Guide to Cost of Capital (available March 2016) and three quarterly dataset updates delivered via PDF

  • Access to historical Duff & Phelps Risk Premium Reports from 1998-2013 and the Duff & Phelps Update, a quarterly email with tips and timely news

  • Detailed step-by-step user guides for both data sets (see FAQ page)

Additional Cost of Capital Handbooks to compliment the Valuation Handbook Risk Premium Toolkit:

  • Valuation Handbook - Industry Cost of Capital: Authored by Duff & Phelps, The Industry Cost of Capital with data through March 2015, provides the same rigorous industry-level analysis previously published in the green-cover Morningstar/Ibbotson Cost of Capital Yearbook. New and noteworthy will be the inclusion of additional methods to calculate cost of equity capital and extra statistics, which will enable a more robust benchmarking analysis when developing industry cost of capital estimates.

  • International Valuation Handbook - Guide to Cost of Capital: Authored by Duff & Phelps, is a must-have publication that includes data through December 2014 and March 2015 and builds on the same rigorous country-level cost of capital analysis previously published in the Morningstar/Ibbotson “international” reports. It includes country-level country risk premia (CRPs) and country-level equity risk premia (ERPs) which can be used to estimate country-level cost of equity capital globally, from the perspective of investors based in 56 different countries.

Multi-user site licenses are also available. For more information, contact BVR at (503) 291-7963 ext. 2 or info@bvresources.com.

*CRSP is The Center for Research in Security Prices


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