PDF The Specific Company Risk Premium A New Approach The SIC code system was developed by the Securities and Exchange Commission (SEC). Developed by the U.S. government in the late 1930s and last revised in 1987. Analysts may disagree with the selection of the appropriate SIC code. These codes are also used in the Division of Corporation Finance as a basis for assigning review responsibility for the company's filings. Industry risk premium | Wall Street Oasis The 2000 edition had only two pages of data, reported only two-digit SIC codes, and presented 66 separate IRPs. We have a large stock of new books & manuals plus a growing selection of out of print titles. SIC Industry Codes Lookup - Insurance Xdate (PDF) Do investors price industry risk? Evidence from the cross-section ... Earn . With this approach, though it is unlikely, a firm could theoretically have no specific company risk premium based on the factor analysis indicating a highly stable, low risk profile firm. Ibbotson Build-Up Method - WordPress.com The risk score is arrived at by aggregating the scores assigned to relevant parameters such as . 631103. This data set summarizes growth in earnings over the last 5 years by industry. PDF The Cost of Equity Capital (Part II of II) The first two digits of the code identify the major industry group, the third digit identifies the industry group and the fourth digit identifies the industry. When using IRPs, one consideration before applying them is the number of companies included in the selected SIC code. This lists out the PE ratio, expected growth (Value Line) and the PE/growth by industry group for the most recent time period. Premiums if your sbbi irp is 200 based on sbbi erp of An SIC code (Standard Industrial Classification) is a four digit numerical code assigned by the U.S. government to businesses in order to identify the primary activity of the business. General Electric (GE), to see the codes listed on that company's landing page. Market Capitalization of at least $10,000 in the most . Cost Of Capital Estmation - Considering Industry Risk One of those categories is the "industry risk premium." Ibbotson's yearbooks contain empirical data to quantify the risks associated with various industries, grouped by SIC industry code.