By Roger J. Grabowski, James P. Harrington, Duff & Phelps, Carla Nunes
The latest price of capital facts for roughly one hundred eighty U.S. industries, pointed out via commonplace commercial class (SIC) code.
The 2016 Valuation Handbook – Industry expense of Capital offers valuation execs with a similar form of rigorous industry-level research formerly released within the green-cover Morningstar/Ibbotson Cost of Capital Yearbook (now discontinued).
Using the latest, up to date facts is necessary. The 2016 Valuation guide – Industry price of Capital presents up to date facts because it is up-to-date every year (with info via March), and contains 3 intra-year Quarterly Updates (June, September, and December; Quarterly Updates are (i) non-compulsory, and (ii) now not offered separately). the recent 2016 version of the ebook is up-to-date with information via March 31, 2016 (the past 2014 and 2015 variations also are on hand, with info via March 31, 2014 and March 31, 2015, respectively).
The 2016 Valuation Handbook – Industry expense of Capital presents as much as 8 (8) expense of fairness capital and weighted normal expense of capital (WACC) estimates for each of the U.S. industries coated within the booklet, plus capital constitution, valuation (trading) multiples, revenues, marketplace capitalization, capital constitution, numerous levered and unlevered beta estimates (e.g. ordinary-least squares (OLS) beta, sum beta, draw back beta, etc.), monetary and profitability ratios, fairness returns, mixture forward-looking earnings-per-share (EPS) development premiums, and more.
For additional information approximately Duff & Phelps valuation information assets released by means of Wiley, please stopover at www.wiley.com/go/valuationhandbooks.
- 2016 Valuation guide - consultant to price of Capital
- 2016 foreign Valuation guide - consultant to price of Capital
- 2016 foreign Valuation guide - expense of Capital
- Access rate of capital estimates and betas for roughly one hundred eighty U.S. industries.
- Reference industry-level valuation multiples, progress charges, revenues, capital constitution, profitability ratios, plus data that permit the person to gauge the impression of 'debt-like' off-balance sheet goods at the capital constitution of the topic industry.
- Use the knowledge during this booklet to (i) benchmark, (ii) increase, and (iii) offer extra help in your personal customized analyses of the during which a topic enterprise, enterprise possession curiosity, defense, or intangible asset resides.
- Ensure that you're utilizing the main updated info to be had by means of including the intra-year Quarterly Updates.
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Examples of how this aggregation technique is applied are provided in the following sections. “Latest” and “5-Year” Averages In most cases, the financial statistics presented herein are calculated over two different periods: (i) Latest and (ii) 5-Year Average. , over the last 5 years). Again, the Median calculation can be thought of as the “typical” observation in the sample. The hypothetical data in Exhibit 4 will be used to demonstrate the aggregation methodology employed to calculate the Median, Latest, and 5-Year Average financial statistics presented herein.
A. minority interest), minus cash and cash equivalents for each of the previous five fiscal years. For the 5-Year Average, total market capitalization of common equity is calculated as the sum of the monthly market capitalization of equity for each year divided by 12 for each of the most recent five fiscal years. Total debt is calculated as the sum of long-term debt, the current portion of long-term debt, notes payable, and preferred stock in each of the previous five fiscal years. EBITDA is calculated as earnings before interest, taxes, depreciation and amortization plus nonoperating income (as a proxy for an adjustment for non-recurring items) in each of the previous five fiscal years.
Appendix B is sorted by SIC code. 40 2016 Valuation Handbook – Industry Cost of Capital (data through March 31, 2016) Equity Valuation Multiples Price to Sales Latest: PSi Me ,i NSi 5-year Average: n PSAi ¦M e,i ,n n 1 n ¦ NS i ,n n 1 Me ,i ,n § pn · ¨ ¦ Me,i , m,n ¸ y pn ©m 1 ¹ where: PS i = Price-to-sales for company or portfolio i M e,i = Market value of equity capital for company or portfolio i NS i = Net sales for company or portfolio i PS A,i = Price-to-sales for company or portfolio i over n periods (in this case, 5 years) M e,i,n = Market value of equity capital for company or portfolio i over n periods NS i,n = Net sales for company or portfolio i over n periods M e,i,m,n = Market value of equity capital for company or portfolio i in month m over n periods pn = Number of months for which market value of equity capital data are available over n periods Latest The “Latest” statistic is calculated as total market capitalization of common equity at the end of the most recent month divided by net sales for the most recent fiscal year.
2016 valuation handbook: industry cost of capital by Roger J. Grabowski, James P. Harrington, Duff & Phelps, Carla Nunes