The Probability-Weighted Expected Return Method: A Critique

Business Valuation UpdateVol. 16 No. 7
July 2010
Jeffrey C. Hooke, MBA

Summary

Each year, business appraisers use the Probability-Weighted Expected Return Method (PWERM) to value tens of billions of dollars worth of private company common stock and common stock options. PWERM is one of the three approaches set for by the AICPA’s P ...