Includes exclusive data for over 200 industries previously offered in Morningstar/ Ibbotson® Cost of Capital Yearbook
Duff & Phelps, the premier global valuation and corporate finance advisor, today announced the release of The 2014 Valuation Handbook-Industry Cost of Capital. This new resource will help finance professionals develop industry cost of capital estimates, an essential input to calculate the feasibility of every merger and acquisition transaction and other strategic investments. The new book provides cost of capital estimates (including equity capital, debt capital, and weighted average cost of capital) for over 200 U.S. industries.
Determining the appropriate cost of capital, or discount rate, can be one of the most challenging aspects of any valuation analysis, particularly in volatile markets or during periods of economic uncertainty. Duff & Phelps’ new resource provides the approaches and data needed to make reliable estimates of this critical valuation assumption, with added insight into industry differentiators impacting these calculations.
This publication will provide the same type of rigorous industry-level analysis previously available in the now discontinued 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, including industry performance data as compared to the S&P 500,valuation multiples, capital structure data and detailed analysis of off-balance sheet liabilities.
“With massive amounts of cash on corporate balance sheets-and an uptick in M&A activity in sectors like technology, healthcare and energy-reliable cost of capital estimates are imperative to achieving successful financial returns,” said Roger Grabowski, Duff & Phelps Managing Director and co-author of Cost of Capital, Applications and Examples. “We are pleased to provide corporate finance professionals and valuation practitioners with a comprehensive, specialized resource to develop industry-tailored estimates of cost of capital.”
The 2014 Valuation Handbook- Industry Cost of Capital is now available for purchase through Business Valuation Resources and ValuSource.
In addition to the new book, related resources include:
- 2014 Valuation Handbook-Guide to Cost of Capital (Duff & Phelps,2014)
- The Lawyer's Guide to Cost of Capital: Understanding Risk and Return for Valuing Businesses and Other Investments (ABA Book Publishing,2014)
To learn more about Duff & Phelps’ valuation and cost of capital expertise, click here.
About Duff & Phelps
Duff & Phelps is the premier global valuation and corporate finance advisor with expertise in complex valuation, dispute consulting, M&A and restructuring. The firm’s more than 1,000 employees serve a diverse range of clients from offices in North America, Europe and Asia. For more information, visit www.duffandphelps.com.
M&A advisory and capital raising services in the United States are provided by Duff & Phelps Securities, LLC. Member FINRA/SIPC. Transaction opinions are provided by Duff & Phelps, LLC. M&A advisory and capital raising services in the United Kingdom and Germany are provided by Duff & Phelps Securities Ltd., which is authorized and regulated by the Financial Conduct Authority.
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