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 hardest and one of the most contentious parts of a DCF valuation. 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 show that the market risk
premium on the Finnish equity market is 7.1%.
Read the full report below and contact us!