Global BV News: Proposed international valuation method using Gordon model

BVWireIssue #214-3
July 22, 2020

global business valuation
gordon growth model, international business valuation, cash flow

With the valuation of a going concern in mind, a newly proposed international valuation method uses the constant perpetual expected growth model (Gordon growth model). The proposed method accounts for a currency risk premium and the economic interaction between cash flows and exchange rates. The method is discussed in a new paper, “International Valuation: A Proposed Method Using the Constant Perpetual Growth Model,” by Thomas J. O’Brien (University of Connecticut—Department of Finance).
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