Valuation Q&A: Does Hedging Affect the Valuations of Food Processing Companies?

Business Valuation UpdateVol. 18 No. 3
March 2012
R. James Alerding, CPA/ABV, ASA

Summary

Editor’s note: Valuation analysts need to understand the concepts of hedging commodity prices so that the valuation conclusion accounts for the risk discount or premium of using hedging as a tool for stabilizing prices for future profitability. During a r ...