Interesting poll results in latest Hitchner pub

BVWireIssue #219-2
December 9, 2020

valuation methods & approaches
risk analysis, discounted cash flow (DCF), industry analysis, cash flow projections, COVID-19

he latest issue of Hardball With Hitchner includes the results of some recent polls that reveal what valuation practitioners are doing to reflect the impact of COVID-19 in valuations. Here is a sampling from two polls that asked the same questions months apart—one poll was taken Oct. 29, 2020, and the other on May 14, 2020—it’s interesting to see the changes in responses:

1. Which equity discount rate methods are you now using most for small businesses with COVID-19?

 a) Buildup model66%58%
 b) MCAPM7% 6%
 c) Both15% 24%
 d) Neither or other2%2%
 e) Not applicable9%10%

2. Have you increased your ERP and/or company-specific risk with COVID-19 known or knowable?

  May October
 a) Both42%31%
 b) Neither5%5% 
 c) ERP only11%5%
 d) CSR only23%38% 
 e) Not applicable20%21% 
3. When do you think the economy will recover?


a) Beginning 202145%31%
b) Beginning 202241%49%
c) Beginning 202310%16%
d) Will not recover1%1%
e) Not applicable3%3%

Hardball With Hitchner is a new monthly publication written by James Hitchner (Valuation Products and Services). For subscription information, click here.

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