The Baratelli Institute · Cost of Equity Reference

The Baratelli Cost of Equity Reference

CAPM cost of equity for 73 major public companies. The equity-side companion to the Baratelli WACC library — the discount rate for dividend-discount models, residual-income frameworks, and the Ke input in every enterprise-value DCF. Sourced inputs, refreshed quarterly, free.

Company Coverage
73
Major public issuers
Method
CAPM
Plus Fama-French three-factor
Refresh Cycle
Quarterly
Next: 2026-09-30
Price
Free
No signup, no download

The Methodology, In Three Views

1. CAPM (default reference)

Ke = Rf + β × ERP
Risk-free rate is the 10-year US Treasury. Beta is a five-year weekly regression against the S&P 500, Blume-adjusted. Equity risk premium is Damodaran's implied ERP (June 2026 update: 5.55%). The one-line answer defensible in a boardroom.

2. Fama-French three-factor

Ke = Rf + βM(MKT) + βS(SMB) + βV(HML)
Adds size (SMB) and value (HML) premia. Empirically improves fit; for large-cap issuers typically shifts Ke by 30-90 bps versus CAPM. Every page shows both.

3. Industry beta (peer approach)

For issuers with thin trading history or a recent business-model shift, use a peer-median unlevered beta re-levered at the target D/E. Every page shows the levered-to-unlevered decomposition.

When to use each

CAPM when you need a defensible one-line answer for a valuation memo, LBO screen, or board discussion — the practitioner default. FF3 when the reader will push on empirical fit (academic, HBS-case reviews, quantitatively rigorous IC memos). Industry beta when the issuer is a recent IPO, undergoing a strategic pivot, or has a thin float that distorts the historical regression.

The Cost of Equity Library — 73 Companies

Alphabetical by ticker. Each card shows the CAPM cost of equity at 2026-06-30.

A-C Alphabetical by ticker
D-F Alphabetical by ticker
G-K Alphabetical by ticker
L-O Alphabetical by ticker
P-S Alphabetical by ticker
T-Z Alphabetical by ticker

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