Duff & Phelps Risk Premium Report Calculator > Frequently Asked Questions

What is the Duff & Phelps Risk Premium Calculator?

The Calculator is an online tool that will help the user develop Cost of Equity (COE) estimates tailored towards their subject company using five different COE methods which utilize empirical data from the Duff & Phelps Risk Premium Report.

What is the main difference between using Duff & Phelps data compared with the SBBI Valuation Yearbook?

The largest difference is that SBBI only considers market capitalization as a measure of size, while the Duff & Phelps Risk Premium Report and Duff & Phelps Risk Premium Calculator consider market capitalization plus 7 other measures of size.

Will the Calculator be available on a per use basis?

Yes - when one purchases the Duff & Phelps Risk Premium Report, it comes with one complimentary use of the Calculator. Currently, there is no other single use purchase option, but you can purchase a one-yearbook subscription.

What subscription options are available for the Calculator?

A one-year subscription to the Calculator can be purchased containing either (1) all data from 1996 through current; or (2) the two most recent years of data. A subscription to the Calculator includes a free PDF of the Duff & Phelps Risk Premium Report. You can purchase the Calculator here.

What are the outputs of the Calculator?

The outputs include a summary of your cost of equity estimates in a printable web presentation, a customized Executive Summary in Word, and full Support Documents in Excel. The Word and Excel output are fully editable.

Is the Calculator a "block box"?

No, not at all. All the calculations are written out and included in the web presentation, the Executive Summary, and the Support Documents. In the Calculator’s deliverables, all inputs are defined, documented, sourced, and you receive a full Microsoft Excel spreadsheet containing very granular support and documentation of all values, along with the equations of the models used (with your subject company inputs plugged in).

How does the Duff & Phelps Risk Premium Calculator differ from other calculators?

The Duff & Phelps Risk Premium Calculator is the most advanced and feature-rich valuation tool of its kind on the market.

The Duff & Phelps Risk Premium Calculator provides a fully-editable Executive Summary of up to four different COE estimation models for your subject company, with the inputs all defined, documented, sourced, and ready to go, as well as a full Microsoft Excel spreadsheet containing very granular support and documentation of all values, along with the equations of the models used (with your subject company inputs plugged in). The Calculator also automatically performs Risk Study analysis that can be used as a powerful defense of company-specific risk adjustments. Plus, it is very simple and intuitive to use.

But maybe the most important feature is that the Duff & Phelps Risk Premium Calculator was built by the authors of the Duff & Phelps Risk Premium Report!

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