Drawing a clear distinction between income and market approaches and methodology

Business Valuation UpdateVol. 4 No. 9
September 1998
Shannon P. Pratt, CFA, ARM, ABAR, FASA, MCBA, CM&AA
income approach, terminal value, control, net cash flow, valuation multiples, equity risk premium (ERP), invested capital


The point of this column is to advocate that income approach methods be distinguished clearly from market approach valuation methods. The valuation profession has (somewhat arbitrarily) classified ...