Damodaran country risk premium 2025. Check under data for downloads and links, as well as archived data from prior years. In computing the statistics, the data used will reflect the most updated numbers I can find for each company, which at the start of each year, will reflect trailing . Jul 31, 2025 · At the start of July, I updated my estimates of equity risk premiums for countries, in an semiannual ritual that goes back almost three decades. A company’s exposure to I am just getting a start on my 2025 data update, but the first phase is getting equity risk premiums, by country. While you can use these numbers as rough estimates of country risk premiums, you may want to modify the premia to reflect the additonal risk of equity markets. My country risk premiums also get updated midyear; my latest update is as of July 2025. 33% (https://lnkd. The S&P 500 starts the year with an equity risk premium of 4. As with some of my other data updates, I have mixed feelings about publishing these numbers. Jan 9, 2025 · Last updated: January 9, 2025 This table summarizes the latest bond ratings and appropriate default spreads for different countries. “Country Risk: Determinants, Measures and Implications—The 2025 Edition” is the July 2025 update by Aswath Damodaran (New York University Stern School of Business) that includes equity risk premiums, by country. The definition of a country risk premium or Market risk premium refers to an increment in interest rates that would have to be paid for loans and investment projects in a particular country compared to some standard. Jul 31, 2025 · As a final adjustment, I scale these default spreads upwards to incorporate the higher risk of equities , and these become the country risk premiums, which when added to the mature market premium, yields equity risk premiums by country. At the beginning of each year, Professor Aswath Damodaran (New York University Stern School of Business) generously posts a great amount of data on his website that include risk-free rates, equity risk premiums (ERPs), corporate default spreads, corporate tax rates, country risk premiums, and other data—all of which are free. in Feb 6, 2025 · While I take a deeper look at the different components of country risk in my annual updates on country risk (with the most recent one from 2024), I will cut to the chase and focus explicitly on my approach to estimating equity risk premiums, using my 2025 data update to illustrate: Aug 1, 2025 · Equity Risk Premiums, by country - July 2025 Country Risk Links EIU Democracy Index Global Peace Index (Exposure to Violence) Corruption Index International Property Rights Index Moody's Sovereign Aug 5, 2025 · The results from following this process are captured in the picture below, where I create both a heat map based on the equity risk premiums, and report on the ratings, country risk premiums and equity risk premiums, by country: Jan 9, 2025 · Data of last full update: January 9, 2025; Country risk premiums last updates: July 1, 2025 The data, with a couple of exceptions, gets updated once a year, at the start of the year (some time in the first two weeks of each year). The 133-page paper is also summarized in a blog post that has links to spreadsheets and also to a 30-minute video of Damodaran discussing country risk. Countries such as Portugal, Italy, Greece and Spain exhibit more pronounced risk premiums in contrast to historically responsible nations like Luxembourg, Sweden, and Denmark. icyejjh mhtmrk suu eto wvixc qpoig ndbn jdpjl trrgktm hzij