Business Valuation Update
- How to Review a Report’s Valuation Methodology
- Ideas for Solving Two Problems in the BV Profession
- How Do Your Firm’s Benefits Stack Up?
- Using Rule of Thumb Data to Uncover Cooked Books
What to Do About Applying Size Premia in Australia
The size premium is an important valuation issue for two reasons: (1) it is difficult to estimate; and (2) its inclusion in deriving a cost of capital can have a material effect on the outcome of a valuation assignment. This article provides an overview of the current status of the size effect and size premia in Australia, examples of cases from Australian courts and tribunals in which size premia have been considered, and the issues and challenges faced in estimating size premia within the Australian market.
An In-Depth Review of the Duff & Phelps Risk Premium Calculator
The Duff & Phelps Risk Premium Calculator is an online tool used to calculate the cost of equity capital. The Calculator allows valuation professionals to enter inputs relevant to the specific valuation date and to the subject company being valued and yie ...
Risky Business: A Generous Helping of Company-Specific Risk
A potential exists for valuation analysts to overestimate the company-specific risk premium when valuing small businesses. For purposes of this discussion, company-specific risk and unsystematic risk are used interchangeably. “Small business” is defined ...
BVU News and Trends February 2021
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends August 2018
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends January 2018
A monthly roundup of key developments of interest to business valuation experts.
Business Valuation Year in Review 2018
The new tax law, lively debates, new guidance, a strong protest, and a simpler approach to estimating cost of capital were just some of the highlights in the business valuation profession during 2018.
An In-Depth Look at the New D&P Valuation Handbook
The SBBI Valuation Yearbook from Morningstar Inc. and the Duff & Phelps Risk Premium Report were the two most common resources utilized by valuation professionals for estimating the cost of capital through 2013. In September 2013, Morningstar Inc. announ ...
BVU News and Trends March 2018
A monthly roundup of key developments of interest to business valuation experts.
Business Valuation Year in Review 2017
It was another eventful year for the business valuation profession, and here’s a wrap-up of notable developments of 2017.
BVU News and Trends October 2020
A monthly roundup of key developments of interest to business valuation experts.
Musings on the Cost of Capital
A veteran appraiser presents an interesting retrospective on the cost of capital and offers some observations on current practice.
BVU News and Trends April 2020
A monthly roundup of key developments of interest to business valuation experts.
Quantifying Company-Specific Risk: A New, Empirical Framework With Practical Applications
In this article, the authors have refined their earlier work1 by providing a detailed example of how to select a company-specific risk premium (CSRP) for a privately held company using benchmark CSRPs derived from guideline publicly traded companies.