Business Valuation Update
- How to Review a Report’s Valuation Methodology
- Ideas for Solving Two Problems in the BV Profession
- How Do Your Firm’s Benefits Stack Up?
- Using Rule of Thumb Data to Uncover Cooked Books
A Preview of the New Benchmark Resource for Industry Cost of Capital
Duff & Phelps published the 2014 Valuation Handbook ‒ Guide to Cost of Capital in March, providing key year-end data previously available in the Morningstar/Ibbotson SBBI Valuation Yearbook and the Duff & Phelps Risk Premium Report. The Guide to Cost of C ...
What’s New and Noteworthy in the DP 2016 Valuation Handbook
It has now been three years since Duff & Phelps (DP) took the baton from Morningstar/Ibbotson (MI) to continue the production of arguably the key resource for cost of capital determinations in business and intellectual property appraisal. The Duff & Phelp ...
BVU News and Trends July 2019
A monthly roundup of key developments of interest to business valuation experts.
Does the Size Effect Still Exist? New Analysis From Pratt and Grabowski
In the upcoming fifth edition of their essential book, Cost of Capital: Applications and Examples, Shannon Pratt, FASA (Shannon Pratt Valuations), and Roger Grabowski, FASA (Duff & Phelps), reveal new analysis that examines the existence of the size premi ...
New Research From Grabowski and Abbott on Recovery and Growth
New upcoming research from Roger Grabowski (Duff & Phelps) and Ashok Abbott (West Virginia University) challenges conventional wisdom about long-term growth rates and economic recovery.
Adjusting Cost of Capital for Prevailing Market Conditions
Revenue Ruling 59-60 requires that the fair market value of specific shares of stock reflect general economic conditions, be they “normal,” “boom,” or “depression.” However, this requirement cannot be met using the Ibbotson and Duff & Phelps cost of capit ...
Concerns Over Data Security in Online Cost of Capital Tools
Business Valuation Update attended the recent NYSSCPA business valuation conference in New York City where several attendees expressed concerns about entering sensitive client data into online tools for estimating the cost of capital. The providers of the Duff & Phelps Cost of Capital Navigator and BVR’s Cost of Capital Professional respond to these concerns.
Letter to the Editor: Avoid Double-Counting With Total Beta?
Dear Editor: I agree with the premise in Ted Israel’s article in the June 2011 BVU that the “opportunity” to double count risks is tremendous with either Ibbotson or Duff & Phelps data. As Professor [Aswath] Damodaran has indicated, the build-up method m ...
Is 6% Now the Best Estimate of ERP?
The Ibbotson® SBBI® Valuation Yearbook indicates that the equity risk premium is 7.1%, while Duff & Phelps indicates 4.9%. But Roger Grabowski and Shannon Pratt, speaking at the recent BVR/FAE Thought Leadership Workshop of Cost of Capital in New York Ci ...
Book Review: The 2014 Valuation Handbook – Industry Cost of Capital
When my copy of the 2014 Valuation Handbook – Industry Cost of Capital (Duff & Phelps) arrived, the cover somehow struck me as familiar. I checked my library, and, sure enough, the cloth-over-cardboard cover was the same type of binding as that on my cost ...
An In-Depth Look at the New D&P Valuation Handbook
The SBBI Valuation Yearbook from Morningstar Inc. and the Duff & Phelps Risk Premium Report were the two most common resources utilized by valuation professionals for estimating the cost of capital through 2013. In September 2013, Morningstar Inc. announ ...
BVU News and Trends November 2018
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends June 2018
A monthly roundup of key developments of interest to business valuation experts.
Risky Business: A Generous Helping of Company-Specific Risk
A potential exists for valuation analysts to overestimate the company-specific risk premium when valuing small businesses. For purposes of this discussion, company-specific risk and unsystematic risk are used interchangeably. “Small business” is defined ...
Cost of Capital Should Align With the Broad Market Conditions as of the Valuation Date
Editor’s note: Marc Vianello introduced his observations regarding the problems associated with conventional methods of calculating cost of capital under volatile market conditions in the January issue of BVU. This article presents one possible methodolog ...
Book Review: A Consensus View—Q&A Guide to Financial Valuation
All valuation practitioners have been confronted with a difficult issue that was not addressed in a traditional textbook. Moreover, there appear to be alternative schools of thought without a clear consensus for numerous controversial issues. When faced w ...
BV News At-a-Glance
A monthly roundup of key developments of interest to business valuation experts.
Global Perspective
Business valuation news from an international perspective.
BV News At-a-Glance
A monthly roundup of key developments of interest to business valuation experts.
BV News At-a-Glance
A monthly roundup of key developments from the standard setters, regulators, and valuation professional organizations (VPOs), plus noteworthy new books, research papers, and studies of interest to business valuation experts.
Global Perspective
Business valuation news from an international perspective.
BV News At-a-Glance
A monthly roundup of key developments from the standard setters, regulators, and valuation professional organizations (VPOs), plus noteworthy new books, research papers, and studies of interest to business valuation experts.
BV News At-a-Glance
A monthly roundup of key developments from the standard setters, regulators, and valuation professional organizations (VPOs), plus noteworthy new books, research papers, and studies of interest to business valuation experts.
BV News At-a-Glance
A monthly roundup of key developments from the standard setters, regulators, and valuation professional organizations (VPOs), plus noteworthy new books, research papers, and studies of interest to business valuation experts.
BV News At-a-Glance
A monthly roundup of key developments of interest to business valuation experts.