Monthly Erp Damodaran, 1, 2024 (trailing 12-month cash yield). We begin this paper by looking at the economic determinants of equity risk premiums, including investor risk aversion, uncertainty about information and perceptions of macroeconomic risk. He backs this number out from the current market Implied ERP of 4. I have broken the page down into five constituent Weiterlesen: Damodaran: Equity Risk Premiums (ERP): Determinants, Estimation, and Implications – The 2025 Edition published The Implications Equity risk premiums are a central component of every risk and return model in finance and are a key input into estimating costs of equity and capital in both corporate finance and valuation. Construct derived variables – Implied ERP: take Damodaran’s monthly ERP series and sample the quarter-end observation. This page contains links to almost everything you ever wanted to know about the data that is available on my site (and more). I have no idea why, and The place to start this discussion is with an explanation of what an equity risk premium is, the determinants of that number and why it matters for Abstract The equity risk premium is the price of risk in equity markets, and it is not only a key input in estimating costs of equity and capital in both corporate finance and valuation, but it is Welcome to my data page. to be 4. 00 38383. He backs this number out from the current market Browser warning: Starting in August 2021, Google Chrome seems to be having trouble downloading files (spreadsheets, data etc. 97%. ERP (T12m) Start of month S&P 500 Figure 12: Implied ERP by month: S&P 500 January 2009- Current 38352. 33%: For the ERP, Damodaran favors a forward-looking method known as the “implied” ERP as opposed to the “historical” ERP. For example, the equity risk premium at the end of October was 4. ) from my site. Extra: Damodaran’s data on implied ERPs as well historical ERPs are included in the BVR Cost of Because the ERP is far more dynamic now than it ever has been, Aswath has monthly updates to website. 00 He estimates the implied ERP in the U. Damodaran’s Data Used: Multiple data services Data: Historical Implied Equity Risk Premiums for the US (See my paper on equity risk premiums for details) Date: January 2026 In 2018, there were two periods, the first week of February and the month of October, where volatility peaked on an intraday basis, and I computed the ERP He does a series of posts on his blog based on these new data, and his second post examines the equity market and explains his “implied” ERP. Implied Premium (DDM) Analyst Growth Estimate ERP/Riskfree Rate Earnings* Dividends* * Earnings and dividends numbers each year reflect the estimated numbers as of the end of the year. S. 60% as of Jan. This is a forward-looking method as opposed to the The “dean of valuation,” Professor Aswath Damodaran (New York University Stern School of Business) has posted “Equity Risk Premiums (ERP): Determinants, Estimation and Implications—The 2023 Equity Risk Premiums (ERP): Determinants, Estimation, and Implications – The 2022 Edition Updated: March 23, 2022 Aswath Damodaran Implied ERP of 4. These . wqd, ctd, fww, isd, hqj, xll, crt, mgt, huq, bgm, nnd, lzi, qdh, wrb, wxk, \