Premium Service – Cost of Capital and Multipliers

Our premium cost of capital service offers you customized solutions for determining capital cost parameters and capital costs on the basis of databases from renowned financial service providers such as Bloomberg and S&P Capital IQ. Our services cover all the steps involved in determining the cost of capital - from identifying peer groups, deriving the base interest rate, beta factors (raw and unlevered) and market risk premiums based on our implicit market risk premium model and other sources, to determining the cost of equity and the cost of debt (including credit score analyses and bond benchmarking analyses) and the weighted average cost of capital (WACC). 

 

Since the introduction of IFRS 16 “Leases”, lease payments must be capitalized in the amount of their present value (right-of-use). Correspondingly, a lease obligation must be recognized as a liability. We determine the incremental borrowing rate (IBR) for discounting the lease payments for you in accordance with the standard. We access various financial information databases (e.g. Bloomberg, S&P Capital IQ) and carry out analyses of the lessee's creditworthiness (e.g. using S&P CreditAnalytics). 

 

We provide you with reliable, court-proof data, detailed and transparent documentation for your working papers and, on request, report sections for use in your valuation report. ​​