BaseRateGuide (base interest rate calculator) Start

Amongst other things, the base interest rate must be determined as part of computing cost of capital based on the CAPM (Capital Asset Pricing Model). It represents the interest rate of a (semi) risk-free investment and is accordingly often referred to as the risk-free rate or base rate.

According to the provisions of IDW S1 (version dated 2 April 2008), the base interest rate must be determined using (modelled) yield curves when determining the objective company value. In this context, the so-called Svensson method, which involves a direct estimate of interest rates for hypothetical zero coupon bonds for various terms, finds application in practice. According to this method, the interest rate is defined as a function of six factors which have been published by the Deutsche Bundesbank for each trading day since 1997.

WOLLNY WP developed the BaseRateGuide® which allows the yield curve, period-based base interest rates as well as the present value equivalent base interest rate to be calculated for specific dates.

Our service for you: The BaseRateGuide® is available to you at no cost. Open the BaseRateGuide® here.

Note: We assume no liability in connection with the use of base interest rates computed using the WOLLNY WP BaseRateGuide®.

ValueGuide (company value calculator) Start

WOLLNY WP created the ValueGuide® which may be used as a tool to estimate company values based on the capitalised earnings method with the following options:

  • Distribution planning in three phases:
    • Detailed distribution planning (3 years),
    • Fixed-rate distribution planning (years 4-10) and
    • Perpetual annuity (from year 11).

Refined planning for base interest rate, risk premium and beta factor segregated for planning phases 1 to 3.

Our service for you: The WOLLNY WP ValueGuide® is available to you at no cost. Open the ValueGuide® here.

Available on the App Store for iPhone and iPad

Note: An estimated calculation of company values using the ValueGuide® is not a replacement for a valuation report. Company values are highly dependent upon the assumed planning and valuation premises. Accordingly, an enterprise valuation always comprises comprehensive analyses of the enterprise and the market, the preparation of a business plan as well as a computation of the enterprise-specific cost of capital.