Rethinking assumptions about discount and capitalization rates

BVWireIssue #79-5
April 29, 2009

The development of discount and capitalization rates was a subject of discussion and debate in the valuation community even before the current economic crisis. Although some practitioners advocate amendments to determinants of these rates, others believe it appropriate to “stay the course,” arguing that all recessions end and the economy is always in flux. In short, knowing how to develop informed, unimpeachable valuation decisions is becoming more and more difficult.

On Thursday, April 30 at 10:00am PT/1:00pm ET, Ron Seigneur, Stacy Preston Collins, and Donald DeGrazia will discuss these and other topics in Developing Discount and Capitalization Rates In a Troubled Economy: New and Emerging Views on Old Issues, a 100-minute teleconference hosted by BVR. Our panel of distinguished experts will cover risk-free rates, economic benefit streams, equity risk premiums, specific-company risk, cost of debt, capital structure, and leverage—all from the perspectives of ongoing valuation debates and how the economic crisis is affecting the valuation of businesses.

Teleconference attendees will receive access to extensive, ancillary reading materials created by BV thought leaders, as well as relevant economic data and a first look at Morningstar/Ibbotson’s Peer Group Builder. To register, find more information, or hear Ron Seigneur describe the program in his own words, click here.

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