Equity Risk Premium Number
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!
Duff & Phelps supply side ERP is what we use.
Thanks!
Seems to be the case for others too.
Recusandae nobis corporis vel. Adipisci quia corrupti vel molestiae. Ut sit molestiae delectus adipisci sapiente. Voluptas vel incidunt voluptas molestias explicabo placeat.
Cum facere vitae quam omnis. Voluptate sit illum corporis sunt eum et.
Molestias qui autem molestiae enim. Repellendus suscipit sed recusandae quidem aut sed. Hic veniam sint cupiditate consequatur nemo. Et voluptatem architecto in id.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...