Use risk premiums as explicit valuation assumptions
Equity risk premium is expected equity return above a chosen risk-free rate. Historical realized excess returns and forward-looking estimates are different quantities. This page displays FMP country and total equity risk premium estimates; it does not calculate a realized portfolio return, credit rating, or forecast accuracy.
How to use the country table
- Find the country and read both premium columns. The continent label is context, not an interactive filter. The table displays 20 rows per page.
- Record the source and obtain an estimation date before using the numbers. The API response shown here contains neither a date nor a detailed methodology. The Refresh action may return a server response cached for one hour.
- Export all returned rows to CSV. Premiums use percentage points: a hypothetical value of 7 represents 7%, or 0.07 in a formula that expects a decimal. Blank fields mean unavailable, not zero.
Separate country exposure from company risk
One common framework adds a country premium to a mature-market equity premium. As an illustration only, 4% plus 3% equals 7%. Damodaran describes an approach that starts with sovereign default spreads and adjusts for equity-market risk. That published method is a reference, not proof that FMP uses the same inputs or update date.
A simple CAPM-style estimate is risk-free rate + beta × equity risk premium. Country risk can instead be modeled as a separate exposure adjustment. Choose one consistent approach; adding country risk again after it is already included in the total premium can double count it. A company’s country of incorporation alone may not describe where its revenue or operations face risk.
Check currency, horizon, and sensitivity
Use a risk-free rate and cash flows consistent with the valuation currency and nominal or real basis. Check beta estimation and business exposure separately. Compare several defensible premium assumptions to see how the valuation changes. A higher discount rate lowers present value for positive future cash flows; it does not show that the selected premium is correct.
Coverage is limited to the returned dataset. There is no current count guarantee, company-specific cost-of-equity calculation, or assurance that a premium captures every risk. These estimates are inputs for research, not investment recommendations.
Sources: FMP Market Risk Premium API; Damodaran’s country-risk methodology and dated estimates. Method reviewed October 21, 2026.