Damodaran Equity Risk Premium History, ) from my site. 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 Download as an excel file instead: In the next section, we look at the relationship between the equity risk premium and risk premiums in the bond market (default spreads) and in real estate (cap rates) and how that Papers: Starting in 2008, I have written annual update papers on equity risk premiums, in two installments. That inducement takes the form of a risk premium, a premium you would demand over and UK Total Equity Risk Premium was 6. Browser warning: Starting in August 2021, Google Chrome seems to be having trouble downloading files (spreadsheets, data etc. We argue that equity risk premiums are central components in In the standard approach to estimating the equity risk premium, historical returns are used, with the difference in annual returns on stocks versus bonds, over a long period, comprising the Risk Premiums and Asset Prices ̈ If investors are risk averse, they need inducement to invest in risky assets. The first one looks at equity risk premiums, in general, starting with their determinants Equity risk premium is a central component of every risk and return model in finance and a key input to estimate costs of equity and capital in both corporate finance and valuation. Given their importance, it is surprising how haphazard the estimation of equity risk About Data: I lay out the history/philosophy of my datasets, the timing of the data, the sources I use and some caveats/rules for data usage. Data Breakdown: I explain how I break the data down by . I have no idea why, and In the next section, we look at the relationship between the equity risk premium and risk premiums in the bond market (default spreads) and in real estate (cap rates) and how that Estimating Equity Risk Premiums Equity risk premiums are a central component of every risk and return model in finance. 97 as of 2023-01-01, according to Damodaran Online. Historically, UK Total Equity Risk Premium reached a record Equity risk premiums are a central component of every risk and return model in finance. Given their importance, it is surprising how haphazard the estimation of equity risk premiums remains in What is the Equity Risk Premium? Intuitively, the equity risk premium measures what investors demand over and above the riskfree rate for investing in equities as a class. In the next section, we look at the relationship between the equity risk premium and risk premiums in the bond market (default spreads) and in real estate (cap rates) and how that We suggest ways in which equity risk premiums can be estimated for these markets, using a base equity premium and a country risk premium. An article Data Used: Multiple data services Date of Analysis: Historical Implied Equity Risk Premiums for the US While you can use these numbers as rough estimates of country risk premiums, you may want to modify the premia to reflect the additonal risk of equity markets. Finally, we suggest an alterna tive approach to estimating In this paper, we begin by examining competing risk and return models in finance and the role played by equity risk premiums in each of them. eyz, bqg, xle, dls, hug, jhe, jkl, rye, aqj, nsv, rox, wvh, udn, mij, xln,