core

Build-Up Discount Rate

Build-up method: risk-free + premiums

Formula

r = Rf + ERP + Size + Industry + Specific

Source: Ch 2, Section 2.3

Sources & references

Intangible Asset Valuation (source book) — Ch 2, Section 2.3
IFRS 13 — Fair Value Measurement (IFRS Foundation)link
Damodaran on Valuation & Online Datasets (ERP, betas, risk-free rates) (NYU Stern)link

risk_free_ratenumber • required

Risk-free rate

Range: 0 — 1

equity_risk_premiumnumber • required

Equity risk premium

Range: 0 — 1

size_premiumnumber • optional

Size premium

industry_risk_premiumnumber • optional

Industry risk premium

specific_risk_premiumnumber • optional

Company-specific risk premium