The Cost of Equity Calculator is an essential tool for financial professionals and investors seeking to determine the return a company must offer shareholders to compensate for investment risk. This powerful calculator employs both CAPM and DDM methods to provide comprehensive financial analysis. Users can leverage this tool to optimize investment strategies, conduct accurate valuations, and evaluate projects with precision. Financial analysts, business managers, and investment professionals will find this calculator invaluable for making informed decisions and maximizing returns. Whether you’re assessing risk, determining capital structure, or planning long-term financial strategies, our Cost of Equity Calculator empowers you to make data-driven choices. Start using this indispensable financial tool today to enhance your investment and business decision-making processes.
The calculator lets you estimate a company’s cost of equity via CAPM or DDM: enter three numbers, press calculate, read the required return. U.S. stocks have delivered a 10.1 % average annual return since 1926 (Ibbotson SBBI Yearbook, 2023).
Enter a risk-free rate, beta and expected market return to instantly see your cost of equity via the CAPM formula. U.S. 10-year Treasury yield averaged 3.9 % in 2023 (U.S. Treasury, 2024).
