smartZebra | Cost of Capital Module

Cost of Capital benefits

Determine the cost of capital quickly and professionally

Updating the cost of capital with just one click

Flexible fine-tuning of all parameters

Visual representation makes interactions between parameters visible

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Cost of Capital features

Features and settings in detail.

Beta factor

For the calculation, the median of the peer group's unlevered beta factor is used. Means and quantiles are also shown. The re-levering is based on the individual gearing of the valuation object.

Credit spread

Credit spreads can be calculated for terms of between 1 and 30 years for various ratings. Data is available on a sector-specific basis or as an average of all sectors.

Riskfree rate

Riskfree base rates for more than 50 countries. You can map the specifications of the IDW S1 and KFS/BW1 standards using the settings for term, riskfree base rate curve, rounding rule and growth rate for present value equivalent interest.

Equity risk premium

The equity risk premium can be set flexibly. This is an equity risk premium before personal taxes on the CAPM. For Germany, the IDW range of recommendation, the recommendation of the capital cost study by KPMG and data from Professor Aswath Damodaran are shown.

Country risk premium

The application of the country risk premium is optional. The data from Prof. Damodaran serve as a basis.

Cost of Capital module

Beta factor – Base rate – Equity risk premium – Credit spread