Equity Market Risk Premium (EMRP) on the Finnish stock market 2024

The equity market risk premium (EMRP for short and often also called market risk premium or equity risk premium), is an important component of the discounted cash flow (DCF) valuation approach.

In our experience, estimating it is one of the trickiest parts of a DCF valuation and it requires good judgement. The EMRP is assumed to represent the excess return that equity investment provides over a risk-free rate.

PwC has studied the equity market risk premium on Finnish stock market since 1999. The results from our latest study from October 2024 show that the market risk premium on the Finnish equity market is 8.3%.

Find the full report below and contact us in case you have any questions!