kpmg equity market risk premium 2021scooter's prickly pear infusion recipe

0000001580 00000 n Date Written: March 23, 2022 Abstract The equity risk premium is the price of risk in equity markets, and it is not just a key input in estimating costs of equity and capital in both corporate finance and valuation, but it is also a key metric in assessing the overall market. Kroll OnTrack Inc. or their affiliated businesses. Goldman Sachs & Co. Dec 2008 - May 20112 years 6 months. historical high valuations. Limited, a private English company limited by guarantee. You receive independent access to all of the tool's functions. I have over 7 years working experience in auditing, finance and accounting in the following industries: consultancy, retail, public sector, insurance and Financial technology. Organizations of all sizes are ever more exposed to new trends in tax regulation, not just locally but globally. Transparency for clear transaction decisions, 2023 KPMG AG Wirtschaftsprfungsgesellschaft, a corporation under German law and a member, firm of the KPMG global organization of independent member firms affiliated with KPMG International. (May 23, 2022). But as some economies navigate a strong labor market against high inflation and hawkish monetary policy, others are facing more challenging conditions. You can only download this statistic as a Premium user. Of course, the pandemic recovery has impacted these figures. Consumer confidence also saw some improvement since its 2020 low in April, but it remains far below the levels observed prior to the outbreak. The index measures the spread of returns of U.S. stocks over long term government bonds. Get full access to all features within our Business Solutions. Profit from the additional features of your individual account. Constituents include the S&P 500 Futures Excess Return Index and the S&P U.S. Treasury Bond Futures Excess Return Index. 17 min read. %]&8e MZ])<9Ed;IC+8:{8Zm5%aUM`L=#G=*1|-}#-owe`I"$/SFCj*jbj&pIpnEG.W*|CmgkZ*iCS#P0wW1_ngnIv!wO}CW % YX]BHK##BlXV'6e3(TZ52A)K\x'+gK The KPMG Valuation Data Sources unlevered betas rely on conceptual frameworks which need to be chosen by the user (raw vs. adjusted levered beta, certain vs. uncertain tax shields, application or non-application of debt-beta, different regression periods). Kroll is a leading provider of goodwill, intangible and long-lived asset impairment testing. That was down 16.2 percent from 374,703 in the prior quarter. While Venezuela battles hyperinflation, Yemen is suffering from a humanitarian crisis and Sudan has high perceived corruption. Financial market overview of the Middle East, Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022, Profit from additional features with an Employee Account. He . 55 East 52nd Street 17 Fl The good news is that inflation can potentially be tamed by other means. %%EOF Today, strong labor markets pose a key challenge for central bankers globally. Values taken from multiple publications. This Markets in a Minute Chart is available as a poster. In, Social Science Research Network. A multi-skilled professional in financial/data analysis and modelling, financial risk management, auditing and accounting. 0000002063 00000 n Kroll regularly reviews fluctuations in the global economic and financial market conditions. This is because the robust job market is contributing to high inflation numbers. to incorporate the statistic into your presentation at any time. Consider the manufacturing sector. This statistic is not included in your account. Implied Equity Risk Premium Update Implied ERP on March 1, 2023 = 4.78% (Trailing 12 month, with adjusted payout); 5.58% (Trailing 12 month cash yield); 5.50% (Average CF yield last 10 years); 5.34% (Net cash yield); 4.53% (Normalized Earnings & Payout) Direct WACC calculation and access to all relevant cost of capital parameters, Reliability and monthly updates of data ensured by KPMG experts, Option of selecting the cash flow currency, Summary and storage option of own peer group from more than 11,000 companies worldwide, Parameters available as Excel spreadsheet for download. Jersey City, NJ. Average market risk premium in selected countries worldwide in 2022 [Graph]. Every country presents varying degrees of risk based on local conditions. [Online]. Some analysts suggest that despite a bleaker economic outlook, companies are hesitant to conduct layoffs. May 23, 2022. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. 5780 0 obj statistic alerts) please log in with your personal account. "Average market risk premium in the United States from 2011 to 2022." S&P 500 Annual Dividend Futures 2024 Index, S&P U.S. Equity Momentum 40% VT 4% Decrement Index. One of these key parameters is the equity market risk premium used to estimate the equity financing cost for discounted cash flow analysis. Show publisher information To identify suitable peer companies, the user can resort to precise search functions, e.g. Brian Morrissey, Head of Insurance, and our insurance team have compiled a collection of KPMG's latest publications and articles which focus on developments in, and issues facing the insurance industry. Please refer to the disclaimers here for more information about S&P Dow Jones Indices' relationship to such third party product offerings. In the above infographic, we look to answer that question using the World Economic Outlook report by the International Monetary Fund (IMF). endstream endobj 646 0 obj <>>>/Filter/Standard/Length 128/O(nfoWPbmVC)/P -1324/R 4/StmF/StdCF/StrF/StdCF/U(tYLKS )/V 4>> endobj 647 0 obj /Metadata 43 0 R/OCProperties<>/OCGs[657 0 R]>>/Outlines 65 0 R/PageLayout/OneColumn/Pages 643 0 R/StructTreeRoot 84 0 R/Type/Catalog>> endobj 648 0 obj <>/ExtGState<>/Font<>/Properties<>/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 649 0 obj <>stream As a Premium user you get access to background information and details about the release of this statistic. Profit from the additional features of your individual account. Based on that rating, determine the credit spread, which is the additional yield over a risk-free investment. The Free Cash Flow WACC is composed of the weighted return expectations of all the investors (equity and debt investors) and the tax correction term (tax shield). Thirty-four percent of them had more than 100 funds within the fund group, and 22% had less than 15 funds. Fixing supply-side dynamics, such as preventing supply shortages and improving transportation systems and infrastructure could cool inflation. Are you interested in testing our business solutions? W.(?Q3|3sv J@?Erv=^FD8_r"m5%R tp@" zI c]j=3j.#DQK[rlEPF#=]Rs#cAGEZN9;Np)#s As investors look to diversify internationally, its critical to consider two factors: Equity risk premiums serve as a guide that can help investors compare country risk, and the additional return potential they should expect for tolerating that risk. See: /en/insights/publications/valuation/valuation-insights-first-quarter-2021/duff-and-phelps-recommended-us-equity-risk, https://www.bea.gov/news/blog/2020-12-22/gross-domestic-product-third-estimate-corporate-profits-revised-and-gdp, https://www.bea.gov/news/2021/gross-domestic-product-4th-quarter-and-year-2020-advance-estimate, https://www.fda.gov/emergency-preparedness-and-response/mcm-legal-regulatory-and-policy-framework/emergency-use-authorization#coviddrugs, https://covid.cdc.gov/covid-data-tracker/#vaccinations. While the latter mainly played out in China in 2022, the possible resurgence of new variants continues to threaten economic recovery worldwide, and the war persists in leaving a mark internationally. Could it finally subside in 2023? New York NY 10055. startxref The accompanying audited consolidated financial statements, related note disclosures, and other financial information contained in the management's discussion and analysis of Ne 0 Even as the January ISM Purchasing Managers Index posted lower readings, hitting 47.4a level of 48.7 and below generally indicates a recessionfactories are not laying off many workers. 0o*q1~*UkL. Chart. Even as the tech sector reports mass layoffs, unemployment claims in the U.S. fall below recent averages. Visualizing S&P Performance in 2020, By Sector. Inflation surged on a global scale in 2022, hitting record-level highs in many countries. A total of 313,973 home-equity lines of credit (HELOCs) were originated on residential properties in the fourth quarter of 2022. "Average Market Risk Premium in Selected Countries Worldwide in 2022. Still unsure? Get full access to all features within our Business Solutions. Our multi-disciplinary approach and deep, practical industry knowledge help clients meet challenges and respond to opportunities. Elected to represent program in the university's Student Leadership Team. When investors purchase stocks internationally, they are exposed to additional risks. The unemployment rate in six of the G7 countries hovers near the lowest in a century. Exhibit 2: U.S. Base Cost of Equity (= U.S. Normalized Risk-Free Rate + Duff & Phelps Recommended U.S. ERP). Get our latest research and insights in your inbox. Importantly, even countries headquartered in mature markets have international risks if they carry out operations in other countries. End-to-end governance, advisory and monitorship solutions to detect, mitigate and remediate security, legal, compliance and regulatory risk. We also present an overview of our analysis and conclusions regarding an appropriate equity market risk premium to be applied as per 31 December 2022. Kroll U.S. Normalized Risk-free Rate Increased from 2.5% to 3.0%, Effective April 7, 2022 Duff & Phelps Recommended U.S. Equity Risk Premium Decreased from 6.0% to 5.5%, Effective December 9, 2020 Duff & Phelps U.S. Normalized Risk-Free Rate Lowered from 3.0% to 2.5%, Effective June 30, 2020 The 5.5% ERP recommendation is to be used with a normalized risk-free rate of 2.5%, implying a base U.S. cost of equity capital estimate of 8.0% (2.5% + 5.5%). As a result, the return on equity allowance set by the QCA has moved in lock-step with changes in government bond yields and has fallen materially since 2014 to historical lows as the QCA's estimate of the risk-free rate has declined. Valuation of businesses, assets and alternative investments for financial reporting, tax and other purposes. Here are the steps Damodaran took to determine a countrys equity risk premium: Premiums will shift over time as a countrys credit rating, credit spread, and equity market volatility changes. It has also altered job market conditions. Discover more about S&P Globals offerings, S&P U.S. Equity Risk Premium Index (USD) Factsheet, Direxion Daily S&P Biotech Bear 3X Shares. Access to this and all other statistics on 80,000 topics from, Show sources information To guarantee full flexibility in setting parameters and calculations, users can access the data calculated by KPMG at any time or incorporate their own values into the cost of capital derivation. Currently, you are using a shared account. Companies may have higher volatility based on a countrys economic, political, and legal conditions. Importantly, even countries headquartered in mature markets have international risks if they carry out operations in other countries. Kroll's team of internationally recognized transfer pricing advisors provide the technical expertise and industry experience necessary to ensure understandable, implementable and supportable results. For example, a consumer products business may weigh exposure based on the location of their revenue. The U.S. is forecast to see an unemployment rate of 4.6%, or 1.2% higher than current levels. 1. 53 companies listed on the Main Market in 2021, the most in any year since 2017. Summary of our observations of the key factors influencing the equity market risk premium. (May 23, 2022). All rights reserved. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. As investors closely watch economic data, rising unemployment could come on the heels of higher interest rates, but so far this has yet to unravel. Should you require more detailed information on the exact methodologies used to derive the equity market He graduated from the Gabelli School of Business at Fordham University . While rising food and energy prices accounted for much of the inflation we saw in 2022, the IMFs World Economic Outlook highlights that core inflation, which excludes food, energy, transport and housing prices, is now also a major driving factor in high inflation rates around the world. 1 If the spot yield-to-maturity on 20-year U.S. Treasuries were used instead, the ERP would have to be increased accordingly. About. Though the expertise of forecasters can give us a general understanding, how they will actually play out is for us to wait and see. The Russia-Ukraine conflict and the lingering effects of the COVID-19 pandemic are also still at play in this years inflation forecasts. Matthew has been wearing many hats in quantitative finance, consulting, and data science. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. What makes up core inflation exactly? It is followed by North Macedonia (15.0%) and Spain (12.7%). Statista. For the pessimists, on the other hand, looking at countries like Zimbabwe, Venezuela, Turkey, and Poland may suggest that we are far from out of the woods on a global scale. KPMG in the US. Our privacy policy describes how your data will be processed. You need at least a Starter Account to use this feature. Exhibit 2 shows the fluctuations in the base U.S. cost of equity since year-end 2019 to the present, using the Duff & Phelps Recommended U.S. ERP and accompanying risk-free rate. The weighted-average equity risk premium is 14.41%. World-wide expert services and tech-enabled advisory through all stages of diligence, forensic investigation, litigation and testimony. A paid subscription is required for full access. Like the U.S., many advanced countries are witnessing labor market strength, especially in the United Kingdom, Asia, and Europe, although how long it will last is unknown. The replacement of London Inter-Bank Offered Rate (LIBOR) is a multiyear transformation, and the impact will be a seismic shift in core operations, vendor relationships and loan products. 7Assumes a market beta of 1.0. 0000056329 00000 n Insurance Insights February 2023. Statista. This list includes investable products traded on certain exchanges currently linked to this selection of indices. A confirmation email has been sent to you. Yet despite recent rate increases, the impact has yet to prompt major waves in unemployment. These reviews warrant a periodic reassessment of the equity risk premium (ERP) and the accompanying risk-free rate and key inputs used to calculate the cost of equity capital in the context of the Capital Asset Pricing Model (CAPM) and other models used to develop discount rates. 0000002412 00000 n Creating value whilst not losing sight of concrete opportunities and the financial risks, Creating values through a merger and/or acquisition. Show publisher information About 11% of them managed mainly equities, 7% . Our privacy policy describes how your data will be processed. I am passionate about mathematical and . While the above countries fight to sustain their purchasing power, some parts of the world are expected to continue faring exceptionally well against the backdrop of a widespread cost-of-living crisis. Together, slow economic growth and stringent labor laws have prevented firms from hiring workers. The Equity Risk Premium (ERP) is a key input used to calculate the cost of capital within the context of the Capital Asset Pricing Model (CAPM) and other models. Hogeschool Utrecht Bachelor International Business and Management (IBMS) . Financial statement audits give assurance over information used by investors. Learn more about how Statista can support your business. No index-linked product details are currently available. Business Solutions including all features. <> discount rate, in practice the estimated discount e e Ke = Rf + (RPm + RPi) + RPs + CRP + RPz (based on the Build-up approach) (based on the CAPM approach) Rf = risk-free rate, RPm = market premium, RPi = industry premium, RPs = size premium, CRP = country risk premium, RPz = company specic risk and = beta K = cost of equity, Kd = after tax cost of debt, W and Wd = proportion of equity . See: https://www.bea.gov/news/blog/2020-12-22/gross-domestic-product-third-estimate-corporate-profits-revised-and-gdp. 0000004162 00000 n If you are an admin, please authenticate by logging in again. hSkh[d711FMG) --%b#VRIEbVm-5" 5765 0 obj 2. Investors generally expect to see a higher return from investments that involve a greater level of risk - investing in stocks is riskier than putting your money into an ultra-low risk . Sorry, something went wrong. Neel is a passionate and motivated individual currently working at KPMG while also pursuing his CPA certification. There are several risks that may impact the shape of the U.S. economic recovery and the pattern of behavior of financial markets in 2021, including: Based on global economic and financial market conditions in late November and early December 2020, which took into consideration the outlook and potential risks for 2021, we found sufficient support to decrease our U.S. ERP recommendation to 5.5% as of December 9, 2020 and thereafter, until further notice. The results can be downloaded into an Excel-sheet or pdf-file and forwarded to the auditor together with the documentation. The average market risk premium in the United States increased slightly to 5.6 percent in 2022. Additionally, the Nordic M&A activity is continuously high with the TMT sector outperforming other sectors based on deal count in Q1 2021. 5-2021 Evaluating Methods of Calculating Country-Specific Market Risk Premium Lora Taylor Follow this and additional works at: https://scholarworks.uark.edu/finnuht . FV survey participants included small, midsize, and large fund groups. One of these key parameters is the equity market risk premium used to estimate the equity financing cost for discounted cash flow analysis. 2023 Kroll, LLC. AIM IPOs have dramatically increased over the last year, jumping from 16 in 2020 to 55 in 2021. Sign up to receive periodic news, reports, and invitations from Kroll. View methodologies, annexes, guides and legal documents. %PDF-1.7 % Alternatively, investors can calculate a weighted-average premium based on the location of a companys revenue or production. This client alert contains a more expanded discussion of the rationale used to support the decrease in the Duff & Phelps-recommended U.S. ERP on December 9, 2020, and is accessible here: https://www.duffandphelps.com/insights/publications/cost-of-capital/duffandphelps-recommended-us-equity-risk-premium-decreased-december-2020 Register in seconds and access exclusive features. Duff & Phelps continuously monitors global economic and financial market conditions that may indicate a change in the indicated ERP and will update our guidance as frequently as warranted. All data is as of July 1, 2020. These risk premiums are estimated based upon a simple 2-stage Augmented Dividend discount model and reflect the risk premium which would justify they current level of the index, given the cash yield, expected growth in earnings and the level of the long term bond rate. It documents the evolution of these factors from March 25, 2020 through November 30, 2020, and their corresponding impact on the ERP. Advisory works with the worlds leading organizations to create and protect the sustainable value of their business. The premiums are based on a study by a New York University researcher, Aswath Damodaran. Kroll is not affiliated with Kroll Bond Rating Agency, Read more on our study Gemarkeerd als . 6Source: Centers for Disease Control and Prevention (CDC) website at: https://covid.cdc.gov/covid-data-tracker/#vaccinations To combat inflation, monetary policy has been shown to take over three or even four years. 656 0 obj <>/Encrypt 646 0 R/Filter/FlateDecode/ID[]/Index[645 21]/Info 644 0 R/Length 69/Prev 626475/Root 647 0 R/Size 666/Type/XRef/W[1 2 1]>>stream This research bulletin prepared by the Dutch Valuations practice summarises our observations regarding the key factors influencing the equity market risk premium since the onset of the financial crisis. Please do not hesitate to contact me. The equity risk premium is the price of risk in equity markets, and it is not just a key input in estimating costs of equity and capital in both corporate finance and valuation, but it is also a key metric in assessing the overall market. You also receive an executive summary. U.S. real GDP decreased an estimated 3.5% in 2020 (compared to an increase of 2.2% in 2019). Following the 8.8% global inflation rate in 2022, the IMF forecasts a 6.6% rate for 2023 and 4.3% rate for 2024 based on their most recent January 2023 update. Unemployment is forecast to tick higher in 2023, but so far red-hot labor markets are resisting this trend on a global scale. In just a few steps, the solution guides the user through the derivation of the individual weighted average cost of capital (WACC) or the cost of equity relevant for the financial sector: the user simply specifies the preferred reporting date, the desired country, the currency, and the peer group and selects the desired settings. hbbd``b`o d; $:@@+5LL S % 2023 Kroll, LLC. filter options by industry, region or profitability (e.g. How can investors determine the equity risk premiums for individual companies? Get the latest KPMG thought leadership directly to your individual personalized dashboard, Click here for the latest equity market risk premium. Risk Vs. Based on current market conditions, Duff & Phelpsdecreased its U.S. ERP recommendation from 6.0% to 5.5% when developing discount rates as of December 9, 2020, and thereafter, until further guidance is issued. 0000003465 00000 n While the IMF predicts that global inflation peaked in late 2022, rates in 2023 are expected to remain higher than usual in many parts of the world. 3. About. Kroll regularly reviews fluctuations in global economic and financial market conditions that warrant a periodic reassessment of the ERP and the accompanying risk-free rate. Average market risk premium in the United States from 2011 to 2022 [Graph]. With an unemployment rate of 3.4%, the U.S. jobless rate hasnt fallen this low since 1969. }E Gs/FMRQvya|^yUzWn0jnBP9 As the most industrialized nation on the continent, unemployment is estimated to hit 35.6% in 2023. 0000003412 00000 n Given email address is already subscribed, thank you! 1.As published in the Duff & Phelps Cost of Capital Navigator atdpcostofcapital.com. As a Premium user you get access to the detailed source references and background information about this statistic. Add the country risk premium to the mature market risk premium (obtained by using the S&P 500 risk premium). Exchange rates are collected from the Federal Reserve (USD) and European Central Bank (Euro). Participants representing 89 registered investment company fund groups completed it. The App includes documentation for all of these sources. With easy access to capital, low interest rates, and a recovering global economy, deal makers around the world announced $5.1 trillion worth of M&A transactions in 2021, up from $3.8 trillion in 2020 and the highest level since 2015 1. The research and data preparation for deriving the cost of capital does not have to be a tedious process. Kroll Recommended U.S. Equity Risk Premium and Corresponding Risk-Free Rates to be Used in Computing Cost of Capital: January 2008 - Present, /en/insights/publications/cost-of-capital/recommended-us-equity-risk-premium-and-corresponding-risk-free-rates, /-/media/assets/images/news/featured-images/2020/mifid-ii-regime-challenges-new.jpg?extension=webp, Impact of High Inflation and Market Volatility on Cost of Capital Assumptions, Effective October 18, 2022. The typified, uniform risk-free rates are derived from yield curves based on regression parameters and results published by central banks (e.g., Deutsche Bundesbank, Bank of England, Federal Reserve). Unlike some declining economic indicators mentioned above, the job market is one of the strongest areas of the global economy. Our Market Risk Management professionals advise corporations and financial institutions on the identification, modelling, measurement, valuation, monitoring and management of market risks. So far, this year is no different. The analysis applies fractional integration methods to data for the US, Germany and Japan, and for robustness purposes considers different time horizons (2, 5 and 10 years) and frequencies (monthly and weekly). When it comes to low inflation, Japan in particular stands out. The inflation differential is calculated by us, based on inflation estimates provided by Economist Intelligence Unit. All rights reserved. Something went wrong. ", Social Science Research Network, Average market risk premium in selected countries worldwide in 2022 Statista, https://www.statista.com/statistics/664734/average-market-risk-premium-selected-countries/ (last visited March 05, 2023), Average market risk premium in selected countries worldwide in 2022 [Graph], Social Science Research Network, May 23, 2022. While we have tried to include all such products, we do not guarantee the completeness or accuracy of such lists. Managed the Asset Servicing Equities and Fixed Income Teams for the European, Canadian, Latin American and Middle . 2023KPMG N.V., a Dutch limited liability company and member of the worldwide KPMG organization of independent companies affiliated to KPMG International Limited, a UK limited by guarantee company. Credit spreads are estimated based on a companys individual rating on a given date. ESG & Sustainability Building a sustainable future Integrated report 2021/2022 Navigating change, safeguarding trust News & Insights IFRS compared to Dutch GAAP: An overview This suggests that todays labor market strength will ease as U.S. economic indicators weaken. All rights reserved. Summary of our observations of the key factors influencing the equity market risk premium. The cut-off dates range from 2011 to the present. Please try again later! endobj An oil and gas company, where true risk lies in their reserves rather than where they sell, may instead be weighted by production. Subscribe here to get every update, including when new charts or infographics go live: Visualizing the 200-Year History of U.S. Interest Rates, The Pyramid of Equity Returns: Almost 200 Years of U.S. Stock Performance, All S&P 500 Sectors and Industries, by Size, Visualizing the History of U.S. Inflation Over 100 Years, The Top Investment Quotes Every Investor Should Know, Visualizing the Hierarchy of Financial Needs, Asset Class Risk and Return Over the Last Decade (2010-2019), Mapped: The Growth in U.S. House Prices by State. Potential Reward Every country presents varying degrees of risk based on local conditions. Third quarter U.S. real GDP was later revised to 33.4%. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. You need at least a Starter Account to use this feature. This paper provides evidence on the degree of persistence of one of the key components of the CAPM, namely the market risk premium, as well as its volatility. Oops. xref The market risk premium Frontier Economics 8. The equity risk premium is the additional return an investor expects for investing in the stock market to help compensate them for the extra risk it involves. Here are the countries with the highest forecasted inflation rates in 2023. 1 March 2023. Learn more about KPMG US Services. Read more. New York NY 10055. 665 0 obj <>stream For the market and country risk premium, we conduct our own analyses and calculations. This research bulletin prepared by the Dutch Valuations practice summarises our observations regarding the key factors influencing the equity market risk premium since the onset of the financial crisis. This paper contains the statistics of a May 2021 survey about the risk-free rate (RF) and the market risk premium (MRP). 0000003710 00000 n For example, the ERP inferred by the Duff & Phelps Recommended U.S. ERP (developed in conjunction with a normalized risk-free rate) against the spot 20-year yield of 1.5% as of December 9, 2020, is: Duff & Phelps last changed its U.S. ERP recommendation on March 25, 2020. At the same time, the labor market is absorbing workers who have lost employment. Equity Risk Premium Yardeni Research, Inc. March 1, 2023 Dr. Edward Yardeni 516-972-7683 eyardeni@yardeni.com Joe Abbott 732-497-5306 jabbott@yardeni.com Please visit our sites at www.yardeni.com blog.yardeni.com thinking outside the box.

Macroeconomic Variables, 1999 Ap Calculus Ab Multiple Choice, Articles K