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Tools & Insights / Base-rate calculator

Business valuation

Risk-free base rate (Basiszinssatz)

Present-value-equivalent base rate under IDW S 1, from the Svensson yield curve of the Deutsche Bundesbank. Data updated daily.

Note: The interactive calculator below is in German. The methodology and the input data refer to German standards (IDW S 1, Deutsche Bundesbank Svensson yield curve). The explanatory text and FAQ on this page are in English.

Lade Bundesbank-Daten…

What is the base rate?

The base rate (Basiszinssatz) is the quasi risk-free element of the discount rate in business valuation. In valuations under IDW S 1 – and therefore in nearly every expert valuation in Germany – it stands for the return on the risk-free investment alternative over the term of the cashflows being valued.

The Technical Committee on Business Valuation and Business Management (FAUB) of the IDW recommends deriving it from the yield curve of German federal bonds – specifically from the Svensson parameters (β0, β1, β2, β3, τ1, τ2) that the Deutsche Bundesbank publishes on every trading day. From those parameters, the present-value-equivalent uniform rate for the relevant horizon is computed and rounded to 0.25 percentage points.

Methodology

The calculator pulls the day’s Svensson parameters directly from the Bundesbank data feed. From the zero-coupon yields it determines the discount factors for the detailed planning period and the terminal value. The base rate shown is the rounded present-value-equivalent rate under the FAUB methodology – the same value that valuation reports typically use.

For deeper technical context: Cost-of-capital in business valuation, application in the M&A process, concrete valuation mandates.

Frequently asked questions

What is the risk-free base rate under IDW S 1?
The base rate is the quasi risk-free rate used in IDW S 1 valuations as part of the discount rate. It stands for the return on an alternative risk-free investment over the term of the cashflows being valued. In practice it is derived from the yield curve of German federal bonds – the value published here is based on the daily-updated Svensson curve of the Deutsche Bundesbank.
How is the base rate computed in present-value-equivalent form?
The present-value-equivalent method determines the single uniform rate that, applied flat across the horizon, produces the same present value of the expected cashflows as the actual term-structure of interest rates. The calculation uses the zero-coupon yields implied by the Bundesbank’s Svensson parameters (β0, β1, β2, β3, τ1, τ2) for the relevant maturities. Our implementation follows the FAUB guidance of the IDW and rounds to a quarter of a percentage point.
Why round to 0.25 percentage points?
The IDW’s Technical Committee on Business Valuation and Business Management (FAUB) recommends rounding the base rate to 0.25 percentage points (¼-percent steps) for valuation practice. The convention takes out the spurious precision of a rate derived from daily quotes and makes valuation reports easier to compare.
What is the data source?
The calculation uses the Svensson yield-curve parameters that the Deutsche Bundesbank publishes daily (German federal securities with residual maturities up to 30 years). The parameters are taken from the Bundesbank’s data feed and used to compute the present-value-equivalent rate for the chosen detailed planning period and terminal value.
Can I use the result in a valuation report?
The calculator delivers an indicative result based on the established methodology and is for orientation only. For an expert report, the valuer must perform the calculation themselves and verify the underlying data on their own responsibility: under IDW S 1 (including the 2026 edition) the methodology must be documented and is the sole responsibility of the valuation expert. The value shown here is computed automatically from the Deutsche Bundesbank data feed. If that interface or data format changes, errors may occur. We therefore give no warranty as to accuracy, completeness or timeliness and accept no liability for use of the result. Cite it in the report transparently with the valuation date, the source and the rounding rule, and do not simply adopt the number itself.