Equity Risk Premium SBF 120

The market risk premium reflects the additional return required by investors in excess of the risk-free rate. The ERP is essential for the calculation of discount rates and derived from the CAPM. It stems from the IRR which equalizes the discounted present value of forecast cash flow and the current share price.
Details on the concepts and methodology, along with some examples and a glossary, are provided in the site's methodology section, particularly methodological notes 1, 2, 3 and 5.
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Market IRR

Risk free rate

Equity Risk Premium

CAPM Risk Premium

Market IRR

Index (1000 as of 12/31/2015)
Market yield (IRR)

Market return and risk premium

Sample SBF 120
Calculation date n
Number of companies (1)
Average market capitalization (M€)
Market IRR
Risk free rate
Market equity risk premium
(1) excluding holding.

* The IRR and the market equity risk premium are presented for information purposes only. These data are used to illustrate the overall IRR trend of the French blue-chips. They cannot be used as they are for the calculation of a discount rate in the context of the valuation of a company or an asset (see methodological note 1).