BV542 Midyear Economic and Cost of Capital Update - Where Are We Now?

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Class Details
Contents (2)

Webinar Description

As we approach the middle of 2024, it is time to reassess where economic and financial market conditions are landing and their impact on valuations and cost of capital assumptions. After one of the fastest rate hiking cycles in history, the U.S. Federal Reserve is embarking on a path to normalize short-term policy rates. But expectations by some investors that long-term rates will revert back to the pre-Covid levels of 2019 may be misplaced. Valuations will have to contend with higher discount rates and potentially slowing economic growth in the foreseeable future. Join Carla Nunes and Jim Harrington as they help unpack these issues and provide updated data to help navigate the current times.

Learning Outcomes

Upon webinar completion, the participant will be able to:

Identify the current U.S. economic and financial market conditions that may have an impact on valuations and cost of capital estimates;
Evaluate the adjustments that may be needed to projected growth in cash flows (e.g., long-term growth rates);
Describe the various methods available to estimate equity risk premium, and;
Select and support cost of capital inputs in the current environment (e.g., cost of debt, risk-free rate, equity risk premium).

Course Audience

Valuation (financial reporting, tax, litigation, fairness opinions) professionals, Corporate Development teams, Controllers, Financial Planning & Analysis (FP&A) teams, Investment Banking professionals, Private Equity professionals

Instructor Information

Carla S. Nunes | Kroll

Carla S. Nunes, CFA, ABV, is a Managing Director in the Office of Professional Practice of Kroll. In addition, Carla is the Global Leader of Kroll’s Valuation Digital Solutions group, which produces cost of capital thought leadership content and data housed in the Cost of Capital Navigator. She has over 25 years of experience in valuation, financial reporting and tax, conducting numerous business and asset valuations for a variety of purposes including purchase price allocations, goodwill and asset impairments, mergers & acquisitions, tax restructuring, debt analysis, and gift and estate tax planning. Carla also has extensive experience working with multinational companies, having addressed complex tax, international cost of capital, and foreign exchange issues. Carla is a contributing author to “Cost of Capital: Applications and Examples,” 5th edition, by Shannon Pratt and Roger Grabowski. She is a co-author of the “Valuation Handbook” series and co-creator of the Kroll Cost of Capital Navigator. She recently co-authored Kroll’s ESG and Global Investor Returns Study and was a contributing author to The Appraisal Foundation’s “The Art of Valuation. Carla is a member of the Education Committee at the iiBV, and just completed her two-year term as Practitioner Director in the Board of FMA International.

James P. Harrington | Kroll

James P. Harrington is a Director in Kroll’s Valuation Digital Solutions group, which produces the content and data housed in the Cost of Capital Navigator. James provides technical support on client engagements involving cost of capital matters. Previously, James was director of valuation research in Morningstar’s Financial Communications Business. James is co-author of the “Valuation Handbook” series with colleagues Carla Nunes and Roger Grabowski. James is co-author of the Stocks, Bonds, Bills, and Inflation® Summary Edition with Roger Ibbotson (Professor in the Practice Emeritus of Finance at Yale School of Management). James is a contributing author to Cost of Capital: Applications and Examples, 5th edition, by Shannon P. Pratt and Roger J. Grabowski. James is a contributing author to Shannon Pratt’s Valuing a Business – The Analysis and Appraisal of Closely Held Companies, Sixth ed. Jim has recently co-authored Kroll’s ESG and Global Investor Returns Study.