The Guideline Publicly Traded Company Method and the Market Value of “Invested” Capital: Should Market Value of “Stakeholder” Capital be the Appropriate Reference?
American Society of Appraisers
Business Valuation Review™
Volume 25, Issue 2
Peter Butler, ASA, CFA
Keith Pinkerton, ASA, CFA
Dennis Reinstein, CPA/ABV, ASA, CVA
If a business appraiser ignores the value of employee stock options when calculating the market value of invested capital (MVIC) for guideline publicly traded companies, the appraiser may significantly undervalue his or her subject company, all else being equal.
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