Indicators of economy-wide cost of capital for equity (government bond + equity risk premium), nominal values, 2016 and 2020

Sources

Calculations based on Bloomberg (2021), Bloomberg Terminal; Damodaran (2021), Data: Current; and Refinitiv Eikon (2021), Eikon Data.

Notes

Government bond rate = ten-year local currency bond yield. Debt and equity market risk premiums represent the additional return over the risk-free rate (expressed here as ten-year government bond yields) required by investors to invest in the debt and equity securities of a given market.