The Cost of Capital Professional from BVR is a source of cost of capital information that integrates data from multiple credible sources, including the University of Chicago’s Center for Research in Security Prices (CRSP), Professor Aswath Damodaran, Salvidio & Partners, and the U.S. Federal Reserve. The philosophy behind this resource is to provide valuation practitioners with an independent, economical, and transparent platform that empowers users to make professional judgments while avoiding the illusion of precision from overcomplicated mathematics. Join the author of the cost of capital platform, Dr. Michael Crain, CPA/ABV, CFA, a practitioner for over 30 years before joining Florida Atlantic University, and Ron Seigneur, CPA/ABV, ASA CVA, a practitioner with more than 40 years of experience and the current chair of the ASA’s Business Valuation Committee, for a conceptual overview and practical demo.
Program Agenda
Cost of capital fundamentals;
Why simpler is often better;
Why professional judgment still matters;
Data sources and computations:
U.S. Federal Reserve Treasury bond yields;
CRSP historical ERPs and size premiums;
Damodaran historical and implied ERPs;
Damodaran and Salvidio industry betas for IPRs;
User-custom values;
S&P 500 sizes premiums vs. beta-adjusted size premiums; and
Using arithmetic means vs. geometric means.
Complimentary resources:
Annual cost of capital summaries; and
Quarterly industry beta reports.
Cost of Capital Professional demo:
Accessing the platform;
Setting up a new project;
Choosing data;
Computing cost of equity;
Computing weighted average cost of capital (WACC); and
Saving and exporting work product.
Where do we go from here?
Where to learn more;
How to request a demo; and
How to subscribe.
Learning Objectives
Explain the illusion of precision from complicated mathematics;
Identify how to retrieve cost of capital inputs relevant to the practitioner’s subject company; and
Explain how the Cost of Capital Professional can help valuation practitioners be more effective.
BVR's Satisfaction Guarantee
Business Valuation Resources offers a 100% money-back guarantee on our training services. If you are not completely satisfied
with your experience, or have any feedback, please contact Business Valuation Resources at 1-503-479-8200 or
customerservice@bvresources.com.
