What Is the Cost of Capital Navigator, and What Data Is Included?
What Is It?
Duff & Phelps launched the online Cost of Capital Navigator platform in early 2018. The Cost of Capital Navigator guides analysts through the process of estimating the cost of capital, a key component of any valuation analysis. The platform provides valuation data spanning 20 years and can be used to develop cost of capital estimates using the capital asset pricing model (CAPM) and various build-up methods for all valuation dates from December 31, 1998 to the present (depending on the subscription level).
Because the platform is web-based, you can access it from your desktop, laptop or tablet.
What Data Is Included?
The Cost of Capital Navigator platform includes the essential valuation data previously published in the Valuation Handbook – U.S. Guide to Cost of Capital. This includes size premia, industry risk premia, equity risk premia (ERPs), risk-free rates and other risk premia that analysts have used and trusted for years to develop cost of capital estimates for U.S. companies.
The platform includes two cost of capital studies: (i) the CRSP Deciles Size Study, and (ii) the Risk Premium Report Study. All quarterly updates are included with a subscription.
Where Are the Tables?
The size premia tables are available in the Cost of Capital Navigator. These include the CRSP Deciles Size Study and the Risk Premium Report Study. This addition of the full-size premia tables, with a breadth of contextual information, will assist analysts when deciding inputs for their cost of capital calculations. The size premia tables from the CRSP Decile Size Study and the Risk Premium Report Study are viewable when creating an estimate in the Cost of Capital Navigator and are also available in the PDF export.
Additionally, the essential valuation data and information from the CRSP Deciles Size Study and the Risk Premium Report Study are available in the Cost of Capital Navigator for analysts to use, for all valuation dates from December 31, 1998 through the present (depending on the subscription level).
Which Subscription Level to Opt for and How Many Licenses Do I Need?
Subscribing to the Cost of Capital Navigator is easy. What level of subscription you need, and how many licenses (sometimes called “seats”) are right for you or your firm depends on just a few criteria:
There are three subscription levels to choose from: basic, pro and enterprise.
The subscription level depends on (i) whether you or your firm does project work that requires valuation data that precedes the most recent two years, and (ii) the number of licenses in your subscription. The basic, pro, and enterprise subscription levels are summarized as follows:
- Access to the two most recent years of valuation data.
- The first seat of the basic subscription is $295.
- An unlimited number of additional seats can be purchased for $129 each.
- Access to all available years of valuation data from 1999–present.
- The first seat of the pro subscription is $595.
- Additional seats can be purchased for $299 each (up to a total of 15 seats).
- Enterprise subscriptions are available for firms that have 16 or more Pro users.
- Contact us for pricing.
Number of Licenses Needed
Estimate the number of licenses needed as follows:
A. How many of your company’s offices have staff completing valuations?
B. How many staff members analyze the cost of capital in doing valuations?
The greater of the answers to A and B is the recommended number of licenses to purchase.
For example, a subscription for a single license is intended for an individual/sole proprietor providing valuation services. Firms with many project teams and analysts that need access to the data would choose a multi-license subscription.
Each subscriber gets a license to access the Cost of Capital Navigator and its data for a period of one year from the date of purchase.