Kroll Recommended
Eurozone Equity Risk Premium (ERP) andCorresponding Risk-free Rates (R f );December 2019–Present***

Date

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Risk-free Rate (Rf)

Rf (%)

Kroll
Recommended
Eurozone ERP
Range (%)

What
ChangedCurrent Guidance:
March 31, 2024 − UNTIL FURTHER NOTICE*

Normalized Risk-free Rate ‒ Germany*

2.5*

5.5‒6.0

Rf

October 18, 2022 − March 30, 2024**

Normalized Risk-free Rate ‒ Germany**

3.0**

5.5‒6.0

RfMay 17, 2022 − October 17, 2022

Normalized Risk-free Rate ‒ Germany

2.0

5.5‒6.0

Rf

September 21, 2021 − May 16, 2022

Normalized Risk-free Rate ‒ Germany

1.55.5‒6.0

RfMarch 31, 2020 ‒ September 20, 2021

Normalized Risk-free Rate ‒ Germany

2.0

5.5‒6.0

ERP

January 31, 2020 ‒ March 30, 2020

Normalized Risk-free Rate ‒ Germany

2.0

5.0‒5.5

ERP

December 31, 2019 ‒ January 30, 2020

Normalized Risk-free Rate ‒ Germany

2.0

4.5‒5.0

ERP Initialized

June 30, 2019 ‒ December 30, 2019

Normalized Risk-free Rate ‒ Germany

2.0n/aRf

March 31, 2017 ‒ June 29, 2019

Normalized Risk-free Rate ‒ Germany

2.5n/aRf

March 31, 2014 ‒ March 30, 2017

Normalized Risk-free Rate ‒ Germany

3.0n/aRf Initialized* We recommend using the spot 15-year German government bond yield as the proxy for the risk-free rate, if the prevailing yield as ofthe valuation date is higher than our recommended German normalized risk-free rate of 2.5%. This guidance is effective when developing
EUR-denominated discount rates as of March 31, 2024 and thereafter. The Kroll Recommended Eurozone ERP remains in the range of
5.5% to 6.0%, based on current economic and financial market conditions, and we believe that a 5.5% ERP (i.e., towards the lower end ofthe range) is more appropriate when developing EUR-denominated discount rates as of February 5, 2024, and thereafter.
** When developing EUR-denominated discount rates as of October 18, 2022 through March 30, 2024, we recommend using the spot 15-year
German government bond yield as the proxy for the risk-free rate, if the prevailing yield as of the valuation date was higher than our recommended
German normalized risk-free rate of 3.0%.
***German normalized risk-free rate and Eurozone equity risk premium (ERP) for use in EUR-denominated discount rates from a German investor
perspective. Additional country risk adjustments may be warranted when estimating discount rates for other countries in the Eurozone.
"Normalized" in this context means that in months where the risk-free rate is deemed to be abnormally low, a proxy for a longer-term sustainablerisk-free rate is used. If using a spot yield when normalization was warranted, the Kroll Recommended Eurozone ERP should be adjusted upwards
accordingly (i.e., adding the spread between the normalized risk-free rate and the spot yield).
To learn more about cost of capital issues, and to ensure that you are using the most recent Kroll's Global Cost of Capital Inputs, visit
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