Damodaran on How Inflation Plays Out in Company Valuations
Professor Aswath Damodaran (New York University Stern School of Business) presents a simple framework for assessing the impacts of inflation on the value of a private company. He also made some explosive remarks about certain inputs to the cost of capital.
BV News and Trends August 2022
A monthly roundup of key developments of interest to business valuation experts.
Global BV News and Trends August 2022
Business valuation news from a global perspective.
2022 Pepperdine report on private cost of capital released
A preview of the “2022 Private Capital Markets Report” was presented at the NACVA’s Business Valuation & Financial Litigation Super Conference last week.
Global BV News: Key consideration for global cost of capital
During the recent ASA New York Fair Value Conference, Mike N. Moskowitz and Tushar Shah, both with EY, discussed global valuations with an emphasis on the cost of capital.
Put ESG impact in numerator, not denominator
Currently, there is no empirical evidence to support including the impact of environment, social, and governance (ESG) factors in the cost of capital, so it should be reflected in the cash flows.
BV News and Trends July 2022
A monthly roundup of key developments of interest to business valuation experts.
Global BV News and Trends July 2022
Business valuation news from a global perspective.
Hitchner rebuts Damodaran’s attacks on cost of capital inputs
Just keep on doing what you’re doing with cost of capital, advises Jim Hitchner (Valuation Products and Services), despite what academics say.
Hitchner responds to Damodaran’s criticisms of cost of capital inputs
BVWire will attend a webinar tomorrow (July 21) by Jim Hitchner (Valuation Products and Services) who will respond to some severe criticisms Aswath Damodaran (New York University Stern School of Business) made during a recent BVR webinar.
Global BV News: 2022 market risk premium and risk-free rate indications from Pablo Fernandez
The results of Professor Pablo Fernandez’s latest survey of the market risk premium (MRP) and risk-free rate (RF) used in 95 countries in 2022 has been released.
Feedback wanted on ‘social value’
The Social Value Working Group at the International Valuation Standards Council has released its second paper in a series that examines whether “social value” can be a basis of value, the difference between social value and the social component of ESG, and whether the existing valuation principle of highest and best use can apply to social assets and social value.
Trugman’s Approach to Assessing Company-Specific Risk
This is an excerpt from the new sixth edition of Understanding Business Valuation, which has a companion website that includes a good selection of full sample valuation reports and other supporting material.
BV News and Trends June 2022
A monthly roundup of key developments of interest to business valuation experts.
Global BV News and Trends June 2022
Business valuation news from a global perspective.
Butler comments on Damodaran’s ‘dynamite’ remarks regarding COE
Last weeks’ issue covered some very choice words (some of which we can’t print here) Aswath Damodaran (New York University Stern School of Business) made about various inputs some analysts use to determine the cost of equity (COE).
Comment on COE data sources survey
In last week’s issue, we reported on a survey of the data sources analysts use to estimate the cost of equity (COE) (click here to see the news item).
Hitchner surveys COE data sources of choice
The Kroll (formerly Duff & Phelps) Navigator has been the consistent clear choice for cost of equity (COE) data by valuation analysts, according to ongoing surveys by Jim Hitchner (Valuation Products and Services).
BV News and Trends May 2022
A monthly roundup of key developments of interest to business valuation experts.
Global BV News and Trends May 2022
Business valuation news from a global perspective.
Global BV News: Higher returns at Saudi Arabia banks
Because aggregate net income increased by 15.5% in 2021 (versus 2020), there was an increase in profitability ratios, reports Saudi Arabia (KSA) Banking Pulse for FY 2021 from Alvarez & Marsal (A&M).
Hitchner examines the Pepperdine survey
BVR has long been a supporter of the Pepperdine University Capital Markets Project, which conducts an annual survey of expected rates of return with respect to private companies.
Global BV News: New methodology for tax valuation of unlisted shares in Switzerland
The application of different valuation bases has a significant impact on the wealth tax value of unlisted shares in Switzerland, according to an article from KPMG.
BV News and Trends April 2022
A monthly roundup of key developments of interest to business valuation experts.
Global BV News and Trends April 2022
Business valuation news from a global perspective.