Why NAV May Not Be The Best Method for Valuing Multi-Tiered Entities

Business Valuation UpdateVol. 12 No. 11
November 2006
Dennis A. Webb, ASA, MAI, FRICS


Despite the recommendations of Revenue Ruling 59-60 §5(b), the net asset value (NAV) method may not be the correct approach for valuing a many-tiered asset-holding company, based on theoretical as well as practical grounds, including the “bottom-up”