Equity risk premium of Portugal
The equity risk premium of Portugal is 3.99% (as of 28 Oct 2026).
- Mature market 3.22%
- Portugal 0.76%
The breakdown
| Part | Value | Basis |
|---|---|---|
| Mature market premium | 3.2230% | Observed |
| Country default spread | 0.3759% | Observed |
| Volatility ratio | 2.0310 | Modelled |
| Country risk premium | 0.7635% | Modelled |
| Total equity risk premium | 3.9865% | Modelled |
Observed means worked out from market or official data. Modelled means estimated from other countries' data.
How each part was found
The default spread is the 10-year government bond yield of Portugal minus Germany's, never below zero (monthly series from the OECD). The volatility ratio is one constant, the average of the ratios we measured for the United States, Germany and Canada. That makes the country premium and the total modelled.
Where Portugal stands
Portugal is 154th of 175 countries by equity risk premium, counted from the highest.
Among the 18 countries whose totals are modelled, Portugal is 11th.
The median for the 49 countries in Europe is 4.53%, and totals there run from 3.22% (Denmark) to 29.88% (Belarus). Portugal is 0.55 points below that median.
At 3.99%, that is 1.24 times the mature market premium of 3.22%.
Portugal is in the euro area. Its total is 0.76 points above Germany's 3.22%, and Germany is the euro-area reference.
The closest countries by total are Brunei (4.00%), the Cayman Islands (4.00%) and Czechia (4.00%).
How it is calculated
Total premium = mature market premium + country premium.
The country premium is the extra yield the country's government pays over Germany's, multiplied by how much more volatile its shares are than its bonds.
Use it in a cost of equity calculation
Cost of equity = risk-free rate + beta x equity risk premium. With made-up inputs of a 4.00% risk-free rate and a beta of 1.2, a company earning in Portugal has a cost of equity of 4.00% + 1.2 x 3.99% = 8.79%.
The figures are in US dollar terms. For another currency, add the inflation difference between the two currencies.
Get it by API or MCP
GET /v1/economics/PRT/equity-risk-premium
{ "country": "PRT", "as_of": "2026-10-28",
"country_risk_premium": "0.7635", "total_erp": "3.9865",
"basis": { "total_erp": "modelled", ... } }
MCP: economics_get_equity_risk_premium { "country": "PRT" }Latest figure, history and every country, free with an API key.
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Common questions
What is the equity risk premium of Portugal?
The equity risk premium of Portugal is 3.99% (as of 28 Oct 2026), the extra return investors expect from shares over a risk-free government bond.
How is the country risk premium of Portugal worked out?
It is the extra yield Portugal pays over Germany on 10-year government bonds, multiplied by a volatility ratio. The country premium is 0.76% and the total is 3.99%.
Which equity risk premium should I use for Portugal?
For a company whose cash flows are mostly earned in Portugal, use 3.99%. For one earning in several countries, weight each country's premium by where its cash flows come from.
How often is it updated?
Every month. Each figure carries its date, and earlier dates stay in the history endpoint.