The Implied Private Company Pricing Line 2.0 K0 = (FCFF1 / P) + g

Business Valuation UpdateVol. 19 No. 9
September 2013
Rod Burkert, CPA/ABV, CVA
Peter J. Butler, CFA, ASA
Robert M. Dohmeyer, ASA

Summary

Most business appraisal assignments are for private companies with revenue less than $10 million. Current costs of capital (K0) estimation methods rely almost entirely on public security returns. Small privately held companies are different from public eq ...