Use rules of thumb with caution, not as a primary appraisal method

Business Valuation Update
October 7, 2002
Shannon P. Pratt, CFA, ARM, ABAR, FASA, MCBA, CM&AA
pratt's stats (PS), rules of thumb, american bar association (ABA), discretionary cash flow


The first thing to say about rules of thumb is that they should practically never be relied on as a primary appraisal method. Having said that, if there are valuation rules of thumb for an in ...