The valuation of technology companies is complex and one of the most sensitive assumptions in the income approach to value is the discount rate. It is vital to estimate expected equity returns properly, because these estimates have far reaching economic and financial implications for corporations, governments and individuals across all sectors of the global economy. Expected returns affect critical decisions such as allocating capital resources, pricing assets, and determining quantities reserved for future obligations.
The RTERP is an innovative process that uses software and database programming, combined with economic and financial modeling, to provide estimates of the ex-ante ERP and size and technology industry risk premiums, along with relevant graphs and statistics.
