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).
Please let us know if you have any comments about this article or enhancements you would like to see.