Using Monte Carlo Simulation as a Supplement to the Single Period Capitalization Method

Business Valuation UpdateVol. 20 No. 5
May 2014
Scott M. DeMarco, CBA, CVA, CDFA, CPVA

Summary

The single period capitalization method (SPCM) can be utilized when valuing business interests that are expected to grow at a relatively steady rate. However, even businesses that have steady historical earnings can have future earnings that deviate from ...