Euro area rates and prices from the ECB and Eurostat

• Part 1 of 4 · Rates

• Part 2 of 4 · Prices

Spot, forward and par curves for AAA-rated and all euro area central government bonds, from 3 months to 30 years.

HICP inflation, producer prices in industry and construction cost indices by country.

• Part 3 of 4 · Timing

• Part 4 of 4 · Terms

Daily and monthly

Free to reuse

ECB curves every TARGET business day since September 2004; Eurostat series monthly or quarterly.

Free with attribution. Record the series code and access date.

■ ECB · Yield curves

Euro area risk-free rates

The ECB estimates yield curves daily from euro-denominated government bonds. They give a consistent euro risk-free rate for any maturity.

Curves

Using them

AAA curve: based only on AAA-rated euro area central government bonds.

Risk-free proxy: the AAA spot rate is a common euro risk-free rate.

All-government curve: includes all euro area central government bonds.

Maturity: match the maturity to the duration of the cash flows, or use a long maturity for a going concern.

Spot, forward and par: zero-coupon spot yields suit discounting; par yields compare with bond quotes.

Country spread: compare a country's own yield with the AAA curve to see sovereign risk.

Range: maturities from 3 months to 30 years, available from September 2004.

Citation: record the series key from the ECB Data Portal and the date.

Example: for a German company valued in euro at 30 September, the valuer takes the 10-year AAA spot rate from the ECB Data Portal for that date.

Practice tip: use the same currency for the risk-free rate and the cash flows.

■ Eurostat · Prices

Inflation and price indices

Eurostat publishes harmonised price statistics for EU countries, useful for inflation assumptions and for indexing costs.

Inflation

Producer and construction prices

HICP: harmonised consumer price inflation for each EU country and the euro area.

Producer prices in industry: indices by activity, useful for indexing equipment costs.

Forecast check: compare inflation assumptions with ECB staff projections.

Construction producer prices or costs (sts_copi): new residential building costs by country.

Currency conversion: inflation differentials support converting discount rates between currencies.

Frequency: check whether a series is monthly or quarterly, and its base year, before indexing.

Real and nominal: keep cash flows and discount rates consistent.

Country choice: use the index for the country where the asset is located.

Example: a building constructed in 2019 for EUR 10 million is indexed to the valuation date with the national construction cost index as one input to replacement cost.

Practice tip: for non-residential buildings, look for a national index if the Eurostat series covers only residential buildings.

■ ECB & Eurostat · In valuation

Where these inputs fit

Euro area rates and prices enter both the income and the cost approaches.

Income approach

Cost approach

Cost of equity: euro risk-free rate plus equity and country risk premiums.

Trending: index historical costs to the valuation date.

Cost of debt: compare company borrowing costs with government yields.

Replacement cost: indices are a cross-check on current quotes.

Long-term growth: inflation expectations frame nominal terminal growth.

Obsolescence: indices do not capture functional or economic obsolescence.

Currency: convert a US dollar discount rate to euro with the inflation differential.

Location: building cost differences between countries can be large.

Example: a US dollar cost of equity of 10% becomes about 9.5% in euro with expected inflation of 2.5% in the US and 2.0% in the euro area: (1.10 × 1.020 ÷ 1.025) − 1.

Practice tip: use the WACC calculator to keep the currency of each input consistent.

■ ECB & Eurostat · Quality control

Reliance and common pitfalls

Both sources are official statistics. Most errors come from choosing the wrong series.

Reliance

Pitfalls

Official sources: both are primary statistics; cite them directly.

Wrong curve: using the all-government curve when the AAA curve is intended, or the reverse.

Series keys: record the exact series code.

Spot versus par: mixing them within one model.

Revisions: price indices can be revised and rebased.

Headline versus sector: using HICP where a producer or construction index fits better.

Working papers: save downloads with the access date.

Base year: indices with different base years must be rebased before combining.

Example: the valuer finds two construction cost series with different base years and rebases both to the same year before comparing them.

Practice tip: for US dollar inputs, use the Valuvix FRED guide.

✱ Source and attribution

Information from the ECB and Eurostat

European Central Bank, euro area yield curves, ECB Data Portal. Eurostat, construction producer price and construction cost indices, HICP and producer prices in industry. Valuvix links to the originals and does not reproduce ECB or Eurostat data.

Related Valuvix calculators: Risk-Free Rate, Cost of Equity, WACC, Cost Approach.