"The ERP is one of the most important issues we have to challenge as a profession," said Roger Grabowski, speaking at the AICPA Business Valuation Conference last month. "When you do an analysis and come up with a rate of return for the discount rate that...
Guest Article (217 words)
Business Valuation Update, December 2011
The new Duff & Phelps Risk Premium Calculator™ is available the first week in March with the newly updated 2011 Duff and Phelps Risk Premium Report. Designed by Roger Grabowski and James Harrington, the Calculator is a web-based application into which use...
Guest Article (2,434 words)
Business Valuation Update, March 2011
Guide to Business Valuations , 9 th ed., by Jay Fishman, Shannon P. Pratt, Cliff Griffith and Mark Wells, Practitioners Publishing Co., May, 1999. $180 Print (3-ring binders, 3 volumes...
Data and Publications Update, Books (1,538 words)
Business Valuation Update, May 1999
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...
Jessica Landay, Brenda M. Clarke
Guest Article (3,111 words)
Business Valuation Update, February 2015
In valuing debt instruments, the income approach is the first thing to look at "because it forces the analyst to consider factors such as timing of principal and interest payments, credit quality of the issuer, and likelihood of default," said Bernard Pum...
Guest Article (1,260 words)
Business Valuation Update, January 2013
A sneak preview of the upcoming classic book on cost of capital, new opportunities arising from the growing popularity of dividend recaps, the latest key Tax Court cases, how healthcare reform is transforming valuations in this industry—even valuing a spo...
Guest Article (2,360 words)
Business Valuation Update, December 2013
Duff & Phelps regularly reviews fluctuations in global economic and financial conditions that warrant periodic reassessments of the equity risk premium (ERP). Based upon current market conditions, Duff & Phelps is decreasing its U.S. ERP recommendation to...
James P. Harrington, Carla Nunes
Guest Article (2,106 words)
Business Valuation Update, March 2012
Note: The following is the foreword by Aswath Damodaran (NYU Stern School of Business) to the newly released Cost of Capital, 3rd edition (Wiley, 2008), by Shannon Pratt and Roger Grabowski. Given the central role of cost of capital in discounted cash f...
Data and Publications Update (342 words)
Business Valuation Update, May 2008
In the Income Approach Example on page 2 of the September BV Update , you show the calculation of a discount rate using the CAPM method. I have several questions about the calculation: 1.
Reader and Editor Exchange (901 words)
Business Valuation Update, October 1998
On October 17, the BV Wire posted a survey asking about some of the valuation issues long thought settled, with particular emphasis on elements of the discounted cash flow (DCF) method that, in practice, can still be troublesome.
Guest Article (2,375 words)
Business Valuation Update, December 2012
Introduction Recent articles have pointed to concerns about the validity of using option pricing models (OPM) to determine the value of common stock in 409(a) valuations. At issue is the question of whether OPMs provide appropriate methodologies to estab...
Ronald H. Schmidt, Lawrence D.W. Schmidt
Guest Article (2,215 words)
Business Valuation Update, May 2011
The Discount Rate in Damages: Dunn’s Cases You Need to Know BV appraisers and litigation experts are especially invaluable to attorneys when it comes to compiling and calculating the financial evidence in an economic damages/business valuation case. Fr...
Guest Article (3,659 words)
Business Valuation Update, August 2010
Here’s a rundown of some of the major developments in the business valuation profession during 2015, which marked the 20th anniversary of Business Valuation Update. The October 2015 issue presented a retrospective as well as insights into the profession f...
Guest Article (1,218 words)
Business Valuation Update, January 2016
Valuation experts hit the jackpot in Las Vegas at the annual Advanced Business Valuation conference of the American Society of Appraisers (ASA). The event had great sessions that offered some practical advice for a wide variety of valuation issues, from e...
Guest Article (1,151 words)
Business Valuation Update, December 2015
Editor’s Note: There is an ongoing debate over the reliance on the cost approach in valuing intangible assets in a healthcare industry context. Adding fuel to the fire is an AICPA white paper on the application of the cost approach to valuing intangibles...
Mark O. Dietrich, Timothy R. Smith
Guest Article (4,902 words)
Business Valuation Update, November 2015
At the time I write this (the morning of Aug. 8, 2011), it appears that the initial reaction in worldwide equity markets to the turmoil in the euro zone and Standard & Poor’s downgrade over the weekend of the U.S. government’s credit rating has been to se...
Guest Article (1,751 words)
Business Valuation Update, September 2011
As an appraiser, I have had the opportunity to prepare many valuations for New York statutory fair value cases, and I have testified in some of them. I’d like to weigh in on the topic of discounts for lack of marketability (or DLOMs) as a follow up to the...
William C Quackenbush
Guest Article (1,841 words)
Business Valuation Update, March 2016
The valuation of common stock for venture-backed, privately held companies became a headline with the IRS’ proposed—and now final—409A regulations (effective January 1, 2008). However, since then it has been the auditors’ diligent application of SFAS 123...
Thomas D. Miller
Guest Article (1,717 words)
Business Valuation Update, September 2007
The author presents specific due diligence guidelines for assessing the strength and weaknesses of international capital models.
James T. Budyak
Guest Article (1,875 words)
Business Valuation Update, May 2006
In statutory appraisal, Chancery affirms need for tax affecting in calculating projected free cash flows for DCF model; "operative metric" under Kessler model is amount of funds available for distribution to shareholders, not actual distributions made.
Court of Chancery of Delaware Delaware US, Action: Dissenting Shareholder
Legal and Court Case Update (2,922 words)
Business Valuation Update, October 2015