6th edition of the IVC cost of capital study

IVC has started to work on the 6th edition of the capital market study “Cost of capital and multiples for company valuation – Company and industry analyses 2020/2021”. This edition will again provide access to valuation-relevant data such as beta factors, borrowing costs and capital structures for the companies in the HDAX (as of December 31, 2019; updates until September 30, 2021). Multiples as well as EBITDA and EBIT margins for plausibility checks of planning calculations are provided as usual.

The following sub-sections will be added:

  • Determination of expected borrowing costs, i.e. borrowing costs that are derived by taking into account probabilities of default
  • Conceptual foundations and empirical analyses of the market risk premium
  • Notes on the use of cost of capital for valuations in connection with the leasing standard IFRS 16
  • Determination of the lessee’s incremental borrowing rate in the light of the leasing standard IFRS 16

The 6th edition is expected to appear in June 2020 and can be pre-ordered from IDW Verlag.