A common approach to developing a discount for lack of marketability (DLOM) when using restricted stock studies is to simply list their averages and use those figures in the estimate. This is the “benchmark average” approach, but it does not provide enough analysis, says Pasquale Rafanelli (Empire Valuation Consultants) during a recent webinar. The analysis should tie the restricted stock study to the characteristics of the subject company. Rafanelli spent some time discussing the Stout Restricted Stock Study (formerly FMV Opinions), which includes the DLOM Calculator. The calculator embodies the restricted stock comparative analysis approach (RSCAA), which is driven by the financial characteristics of your subject company as well as the volatility of the market. The results can be used as a sanity check to a standard DLOM analysis, or they can play a more important role in the overall analysis. The calculator’s output reports can be used in an appendix to your report.