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
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...
Ted D. Israel
Guest Article (3,396 words)
Business Valuation Update, June 2011
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
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
There no longer seems to be any debate about which study of U.S. historic capital markets is "definitive." Now that 2007 updates are available to both Morningstar/Ibbotson’s Stock, Bonds, Bills, Inflation (SBBI) Valuation Edition Yearbook and Duff...
Special Report (788 words)
Business Valuation Update, June 2007
All valuation practitioners have been confronted with a difficult issue that was not addressed in a traditional textbook. Moreover, there appear to be alternative schools of thought without a clear consensus for numerous controversial issues. When faced w...
Guest Article (1,114 words)
Business Valuation Update, May 2016
The issue in this appraisal action was the value of the shares of two cellular companies (Janesville and Sheboygan).
Court of Chancery Delaware US, Action: Dissenting Shareholder
Legal and Court Case Update (535 words)
Business Valuation Update, May 2005
For most of us, valuing the small business is what we find ourselves doing most often. Sometimes it is difficult to make sense of applying public market data to our "mom & pop" pizzerias or construction companies. Consider the average market capitalizat...
Guest Article (1,076 words)
Business Valuation Update, October 2008
Duff & Phelps published the 2014 Valuation Handbook ‒ Guide to Cost of Capital in March, providing key year-end data previously available in the Morningstar/Ibbotson SBBI Valuation Yearbook and the Duff & Phelps Risk Premium Report. The Guide to Cost of C...
Guest Article (2,076 words)
Business Valuation Update, November 2014
Dear Editor: I agree with the premise in Ted Israel’s article in the June 2011 BVU that the "opportunity" to double count risks is tremendous with either Ibbotson or Duff & Phelps data. As Professor [Aswath] Damodaran has indicated, the build-up method m...
Guest Article (635 words)
Business Valuation Update, August 2011
It has now been three years since Duff & Phelps (DP) took the baton from Morningstar/Ibbotson (MI) to continue the production of arguably the key resource for cost of capital determinations in business and intellectual property appraisal. The Duff & Phelp...
Ronald L. Seigneur
Business Valuation Update, June 2016
Appeals court finds no error in trial court’s rejection of plaintiff’s demand for inspection of corporate records on executive compensation, where expert testimony showed information was not necessary to value plaintiff’s minority interest in company.
Court of Civil Appeals Alabama US, Action: Dissenting Shareholder
Legal and Court Case Update (1,314 words)
Business Valuation Update, May 2016
Revenue Ruling 59-60 requires that the fair market value of specific shares of stock reflect general economic conditions, be they "normal," "boom," or "depression." However, this requirement cannot be met using the Ibbotson and Duff & Phelps cost of capit...
Guest Article (1,609 words)
Business Valuation Update, January 2012
In this exclusive interview, Roger Grabowski, ASA (Duff & Phelps, Chicago) discusses the recent Risk Premium Report (RPR) update, its strengths as well as its weaknesses, and plans for future expansion.
Special Report (1,773 words)
Business Valuation Update, November 2006
In a malpractice action against a real estate appraiser, district court excludes valuation of leasehold interest by plaintiff’s financial expert for failing to comply with any professional standards, and for unreliability under Daubert.
United States District Court New York US, Action: Malpractice (Legal)
Legal and Court Case Update (2,244 words)
Business Valuation Update, April 2012
In September 2006 the Financial Accounting Standards Board (FASB) released Statement of Financial Accounting Standards No. 157 Fair Value Measurements. While the FASB fair value standard is applicable to all areas where fair value is used in Generally Ac...
David L. Larsen
Special Report (1,122 words)
Business Valuation Update, March 2007
A monthly roundup of key developments from the standard setters, regulators, and valuation professional organizations (VPOs), plus noteworthy new books, research papers, and studies of interest to business valuation experts.
Guest Article (463 words)
Business Valuation Update, February 2016
Court remands case for review of whether ESOP trustee breached its fiduciary duty by failing to apply a marketability discount to large, privately held company stock.
United States Court of Appeals 7th Circuit US, Action: ESOP
Legal and Court Case Update (541 words)
Business Valuation Update, April 2007
In response to BVU’s coverage of In re Orchard Enterprises, Ted Israel (Eckhoff Accountancy) finds much to compliment in the Chancery Court’s opinion, but also two major points to criticize regarding the court’s characterization of the build-up method (BU...
Guest Article (794 words)
Business Valuation Update, November 2012
Building on the recent equity risk premium study we presented (BVU, Nov. 2005) and one of our latest telephone conferences (Top Controversies in Determining Cost of Capital, Feb. 1, 2006), this article offers a new method to ‘smooth over’ the debate on a...
Guest Article (2,299 words)
Business Valuation Update, April 2006