USA Equity Risk Premium: A detailed study of equity risk premium for the United States

by Andrew Pike

Overview

This equity risk premium (ERP) study for the United States follows up on our research into ERPs in several geographies where we had observed that income approach (DCF) valuations sometimes differed from market approach (multiples-based) valuations. We discovered that traditional methods for measuring ERP sometimes resulted in discount rates that were too low, which led to our 8 year study into ERPs in various markets.

Our approach begins with an analysis of the subject market, which allows us to rationalize the results of our research for each market. We then apply multiple approaches to measure ERP.

One of our approaches, the Credit Spread ERP, is a proprietary approach developed by the author. In addition to Credit Spread ERP, we apply Implied ERP and Historical ERP approaches, and we comment on ERP Surveys. This book provides equity risk premium from multiple perspectives and provides a range of possible outcomes.

Product Details

BN ID:	2940160768236
Publisher:	AN Valuations B.V.
Publication date:	01/20/2022
Series:	June 2021
Sold by:	Barnes & Noble
Format:	eBook
File size:	6 MB

About the Author

Andrew Pike is a business and intangible asset valuation advisor with more than 25 years of investment industry experience and almost 20 years of valuation advisory and corporate finance experience. His primary areas of focus include purchase price allocations (PPA), impairment testing, shareholder disputes, tax and transaction-related valuations, fair value, portfolio risk measurement services, and M&A advisory.

Andrew is the founder and managing director of AN Valuations BV in Leiden, the Netherlands. AN Valuations is a boutique valuation advisory practice servicing companies throughout Europe and North America across a broad range of industries with valuations ranging from micro-cap to large-cap. AN Valuations assists companies with valuations of businesses, financial instruments, derivatives, personal property, and intellectual property (such as brand assets and patents) for transaction, fiscal, legal, and accounting purposes, particularly in cross-border situations.