Getting specific on CSRPs

BVWireIssue #71-1
August 6, 2008

In the American Society of Appraiser’s current issue of the Business Valuation Review, Keith Pinkerton, ASA, CFA, and Peter J. Butler, CFA, ASA (both of Hooper Cornell, Boise, ID) submitted a “Letter to the Editor” as a response to a published article on quantifying company-specific risk premiums (CSRP) for privately held firms using a Monte Carlo simulation (download the Letter to the Editor as a free PDF here). 

Although they give kudos to the article, they discuss the need to use market evidence as empirical support for quantifying CSRPs and ask, “Why ignore the data?” Good question. Pinkerton and Butler developed the Butler Pinkerton Model™ to objectively quantify CSRPs.  Learn more about the Butler Pinkerton Model here, and read articles about the Model here.

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