CAPM Calculator
Cost of equity (Rf + β × market premium).
%
NZ 10-year govt bond yield is the typical proxy
%
Cost of equity
10.550%
Equity risk premium: 5.50%
About this calculator
CAPM gives a required return on equity from a risk-free rate, beta and the market risk premium.
- Risk-free rate: NZ 10-year government bond yield is the typical proxy.
- Beta: regression of stock vs market returns.
- Market premium: 5–7% is a common assumption.
Formula:
Re = Rf + β × (Rm − Rf)Frequently asked questions
What if my company is private?
Use the average beta of comparable listed companies, then adjust for leverage if needed.
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Calculator NZ provides general information only. For decisions with significant financial, medical or legal consequence please consult a qualified professional.