Stats › Valuation › Equity risk premium

Implied equity premium 4.51%, history says 5.5% to 14.5%

Implied now: 4.51%4.51%ImpliednowHistoric low end: 5.5%5.5%Historiclow endHistoric high end: 14.5%14.5%Historichigh end

The implied estimate is a single number derived from today's prices. The historical range spans nine percentage points depending on method. Source: Damodaran, March 2026.

The equity risk premium is the extra return demanded for holding shares instead of government bonds. Today's prices imply 4.51%, while historical estimates of the same quantity run from 5.5% to 14.5%. The two answer different questions, and neither is a forecast.

4.51%Implied premium
4.23%At the start of 2026
4.28%Risk free rate
5.5% to 14.5%Historical estimates

Members only

The rest of this page is for members

Below this point there are 6 sections, 1 chart and 2 named sources, roughly 650 words of it. Every figure carries the source it came from and the date the data is from.

You can keep browsing every statistic in the library for free. The intro and the summary are always open.