How is the Venezuela risk premium calculated?

Sector-specific premiums are anchored to traded Venezuelan sovereign-debt spreads (where available) and adjusted by sector based on sanctions exposure, foreign-investor dispute history, and FX repatriation friction. Defaults range from approximately 6% (tourism) to 12% (oil & gas).

What's a reasonable discount rate for a Venezuelan investment?

Most institutional investors use a USD-denominated WACC of 10-15% as the base, then add the sector-specific Venezuela risk premium of 6-12%, for an all-in discount rate of 16-27%.

Is this calculator a substitute for a fully diligenced model?

No. The calculator is a first-round filter that surfaces order-of-magnitude returns. A real investment decision requires a fully diligenced model with country-of-origin tax structure, FX repatriation friction, OFAC compliance overlay, and project-finance terms.

Venezuela Investment ROI Calculator — IRR, NPV, Cash Flow Tool

Inputs

Sector

Each sector ships with a baseline revenue growth rate, operating margin, and Venezuela-specific risk premium added to your discount rate.

Initial capital deployed (USD)

Year-1 revenue (USD)

Holding period (years)

Annual revenue growth (override)

Decimal. e.g. 0.12 = 12%/yr. Leave blank to use sector default.

Operating margin (override)

Decimal. e.g. 0.30 = 30%.

Base discount rate (USD WACC)

Sector-specific Venezuela risk premium added on top.

Exit multiple on year-{n} EBITDA

Results

IRR

—

NPV (today)

—

Money-on-money

—

Risk-adjusted discount rate: —. Sector-specific Venezuela premium reflects sanctions exposure, FX convertibility risk, and regulatory volatility. See the sector landing page for the underlying analysis.

Year	Revenue	EBITDA	FCF	Disc. CF

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How this calculator works

The model projects a deterministic revenue/EBITDA/FCF schedule using the sector defaults you can override, applies an exit multiple to terminal-year EBITDA, then discounts every cash flow at your USD WACC plus a sector-specific Venezuela risk premium. The result is an order-of-magnitude estimate suitable for first-round filtering — not a substitute for a fully diligenced model with country-of-origin tax, FX repatriation friction, and project-finance structuring.

Where the sector defaults come from

Defaults reflect publicly observed Venezuelan investment outcomes over the last decade plus contemporary EM-comp benchmarks. Risk premiums are anchored to traded Venezuelan sovereign-debt spreads (where available) and adjusted up or down by sector based on sanctions exposure, foreign-investor dispute history, and convertibility friction. See the pillar guide for the full methodology.

Inputs

Results

Get the full PDF investor model

How this calculator works

Where the sector defaults come from

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