Dear all,
I am building DCF models for US companies and was wondering what Equity Risk Premium you guys use in the industry? Various data sources suggest 5.5% for 2022, but they do not specify how it was calculated. Historical maybe?
Prof. Damodaran from the NYU suggests 4.24% and shows the derivation, but is more than 120 bp different that the "consensus".
I would gladly appreciate if anyone takes the time to answer this.
Thanks!
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Duff & Phelps supply side ERP is what we use.
Thanks!
Seems to be the case for others too.
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