Supporting Data
Historical Implied ERP
S&P 500 implied equity risk premium history from Damodaran.
| Year | S&P 500 | T.Bond Rate | Implied Premium (DDM) | Implied ERP (FCFE) | Implied ERP with risk adjusted riskfree rate | ERP/Riskfree Rate |
|---|---|---|---|---|---|---|
| 1960 | 58.11 | 2.76% | ||||
| 1961 | 71.55 | 2.35% | 2.92% | 2.92% | 1.24 | |
| 1962 | 63.1 | 3.85% | 3.56% | 3.56% | 0.92 | |
| 1963 | 75.02 | 4.14% | 3.38% | 3.38% | 0.82 | |
| 1964 | 84.75 | 4.21% | 3.31% | 3.31% | 0.79 | |
| 1965 | 92.43 | 4.65% | 3.32% | 3.32% | 0.71 | |
| 1966 | 80.33 | 4.64% | 3.68% | 3.68% | 0.79 | |
| 1967 | 96.47 | 5.70% | 3.20% | 3.20% | 0.56 | |
| 1968 | 103.86 | 6.16% | 3.00% | 3.00% | 0.49 | |
| 1969 | 92.06 | 7.88% | 3.74% | 3.74% | 0.47 | |
| 1970 | 92.15 | 6.50% | 3.41% | 3.41% | 0.52 | |
| 1971 | 102.09 | 5.89% | 3.09% | 3.09% | 0.52 | |
| 1972 | 118.05 | 6.41% | 2.72% | 2.72% | 0.42 | |
| 1973 | 97.55 | 6.90% | 4.30% | 4.30% | 0.62 | |
| 1974 | 68.56 | 7.40% | 5.59% | 5.59% | 0.76 | |
| 1975 | 90.19 | 7.76% | 4.13% | 4.13% | 0.53 | |
| 1976 | 107.46 | 6.81% | 4.55% | 4.55% | 0.67 | |
| 1977 | 95.1 | 7.78% | 5.92% | 5.92% | 0.76 | |
| 1978 | 96.11 | 9.15% | 5.72% | 5.72% | 0.63 | |
| 1979 | 107.94 | 10.33% | 6.45% | 6.45% | 0.62 | |
| 1980 | 135.76 | 12.43% | 5.03% | 5.03% | 0.40 | |
| 1981 | 122.55 | 13.98% | 5.73% | 5.73% | 0.41 | |
| 1982 | 140.64 | 10.47% | 4.90% | 4.90% | 0.47 | |
| 1983 | 164.93 | 11.80% | 4.31% | 4.31% | 0.37 | |
| 1984 | 167.24 | 11.51% | 5.11% | 5.11% | 0.44 | |
| 1985 | 211.28 | 8.99% | 4.03% | 3.84% | 0.43 | |
| 1986 | 242.17 | 7.22% | 3.36% | 3.58% | 0.50 | |
| 1987 | 247.08 | 8.86% | 4.18% | 3.99% | 0.45 | |
| 1988 | 277.72 | 9.14% | 4.12% | 3.77% | 0.41 | |
| 1989 | 353.4 | 7.93% | 3.85% | 3.51% | 0.44 | |
| 1990 | 330.22 | 8.07% | 3.92% | 3.89% | 0.48 | |
| 1991 | 417.09 | 6.70% | 3.27% | 3.48% | 0.52 | |
| 1992 | 435.71 | 6.68% | 2.83% | 3.55% | 0.53 | |
| 1993 | 466.45 | 5.79% | 2.74% | 3.17% | 0.55 | |
| 1994 | 459.27 | 7.82% | 3.06% | 3.55% | 0.45 | |
| 1995 | 615.93 | 5.57% | 2.44% | 3.29% | 0.59 | |
| 1996 | 740.74 | 6.41% | 2.11% | 3.20% | 0.50 | |
| 1997 | 970.43 | 5.74% | 1.67% | 2.73% | 0.48 | |
| 1998 | 1229.23 | 4.65% | 1.38% | 2.26% | 0.49 | |
| 1999 | 1469.25 | 6.44% | 1.20% | 2.05% | 0.32 | |
| 2000 | 1320.28 | 5.11% | 1.65% | 2.87% | 0.56 | |
| 2001 | 1148.09 | 5.05% | 1.73% | 3.62% | 0.72 | |
| 2002 | 879.82 | 3.81% | 2.29% | 4.10% | 1.08 | |
| 2003 | 1111.91 | 4.25% | 2.12% | 3.69% | 0.87 | |
| 2004 | 1211.92 | 4.22% | 2.02% | 3.65% | 0.86 | |
| 2005 | 1248.29 | 4.39% | 2.20% | 4.08% | 0.93 | |
| 2006 | 1418.3 | 4.70% | 1.97% | 4.16% | 0.89 | |
| 2007 | 1468.36 | 4.02% | 2.06% | 4.37% | 1.09 | |
| 2008 | 903.25 | 2.21% | 4.05% | 6.43% | 2.91 | |
| 2009 | 1115.10 | 3.84% | 2.60% | 4.36% | 1.14 | |
| 2010 | 1257.64 | 3.29% | 2.24% | 5.20% | 1.58 | |
| 2011 | 1257.60 | 1.88% | 2.71% | 6.01% | 3.20 | |
| 2012 | 1426.19 | 1.76% | 2.47% | 5.78% | 3.28 | |
| 2013 | 1848.36 | 3.04% | 2.03% | 4.96% | 1.63 | |
| 2014 | 2058.90 | 2.17% | 2.24% | 5.78% | 2.66 | |
| 2015 | 2043.94 | 2.27% | 2.46% | 6.12% | 2.70 | |
| 2016 | 2238.83 | 2.45% | 2.41% | 5.69% | 2.32 | |
| 2017 | 2673.61 | 2.41% | 2.36% | 5.08% | 2.11 | |
| 2018 | 2506.85 | 2.68% | 2.50% | 5.96% | 2.22 | |
| 2019 | 3230.78 | 1.92% | 2.03% | 5.20% | 2.71 | |
| 2020 | 3756.07 | 0.93% | 1.65% | 4.72% | 5.08 | |
| 2021 | 4766.18 | 1.51% | 1.72% | 4.24% | 2.81 | |
| 2022 | 3839.50 | 3.88% | 2.16% | 5.94% | 1.53 | |
| 2023 | 4769.83 | 3.88% | 1.97% | 4.60% | 1.19 | |
| 2024 | 5881.63 | 4.58% | 1.76% | 4.33% | 0.95 | |
| 2025 | 6845.50 | 4.18% | 1.69% | 4.23% | 4.46% | 1.01 |