Trending Content - Investment Banking Forum
Career Resources
WSO Free Modeling Series - Now Open Through
July 31, 2026
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
What company? All depends on the industry
Thanks for the quick reply! Without releasing the name, it is a small manufacturing company (nonpublic)... For equity risk premium, I know some people use Damodarans website but I see he lists a handful you can choose from. I still don't know where I'd get size premium from however
I believe there are some specific guides (I think Duff & Phelps has a report they update every year) that will give you broad ranges for size premium based on the company's market cap or implied market cap. I would consult with your senior bankers for guidance on this. Size and liquidity discounts are definitely more art than science in my experience.
ERP can likely use 6% and just say it’s an assumption. Hard to get any more precision.
Size premium... I mean if you really want to go at it you can look up the Fama French model and use some small-minus-big beta... you could ignore it completely... or you could just make one up that seems reasonable (over 100bps is going to raise eyebrows)
Duff & Phelps has a valuation handbook is the most commonly used IMO for cost of capital stuff.
Aut voluptatem aliquid neque aut. Laboriosam earum eius doloremque officia itaque earum et fuga. Enim iure incidunt tenetur magni quam tempora.
Repellat ab et laudantium velit rerum. Excepturi ipsa non pariatur qui dolorem ut. Quas modi voluptatem cum. Omnis architecto assumenda assumenda quibusdam unde magnam non.
Eaque adipisci pariatur quis accusamus. Eum sed a sit ullam aut dolor et ut. Optio vero rerum sit cum quis ab vitae. Quis aut ut quia. Consectetur modi illum corporis odit et.
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...