The New Standard Source of International Cost of Capital Analysis
The 2015 International Valuation Handbook – Guide to Cost of Capital provides data and methodology guidance that will enable the reader to assess risk and develop cost of capital
estimates on a global scale, coupled with data exhibits that provide country-level country risk premia (CRPs), Relative Volatility (RV) factors, and equity risk premia (ERPs). The data
exhibits can be used to estimate country-level cost of equity capital globally, for up to 188 countries, from the perspective of investors based in up to 55 different countries.*
The 2015 International Valuation Handbook – Guide to Cost of Capital is published in June 2015, with data through December 2014 and March 2015. The optional September Semi-annual
Update is also available, with data through June 2015 and September 2015.
Key Features
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Country-level Country Risk Premia (CRPs) for up to 188 countries: The 2015 International Valuation Handbook – Guide to Cost of Capital provides country-level country risk
premia for up to 188 countries globally, from the perspective of investors based in up to 55 different countries. CRPs are estimated using the following models: (i) Country Credit Rating
Model, and (ii) Country Yield Spread Model.
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Relative Volatility (RV) Factors for up to 69 countries: The 2015 International Valuation Handbook – Guide to Cost of Capitalprovides country-level relative volatility factors
for up to 69 countries from the perspective of investors in the U.S. and Germany. Relative volatility factors are estimated using the Relative Standard Deviation Model.
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Equity Risk Premia (ERPs) for 18 countries based in USD and “local” currency:The 2015 International Valuation Handbook – Guide to Cost of Capital provides long-horizon and
short-horizon ERP data in USD and “local” currencies. Additional ERP resources include Pablo Fernandez’ survey of ERPs for a variety of counties.
*Depending on the estimation model being employed, and data availability. Some models do not include estimates for all countries.
