BV News and Trends June 2023
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends May 2023
A monthly roundup of key developments of interest to business valuation experts.
New Country Risk Data Update Reminds Valuers of Factors to Consider
A data update from Aswath Damodaran (New York University Stern School of Business) helps valuation experts explain how they considered each of the risk factors in assessing value for business assets located outside of the U.S.
BVU News and Trends April 2023
A monthly roundup of key developments of interest to business valuation experts.
Damodaran posts 2023 edition of ERP paper
The “dean of valuation,” Professor Aswath Damodaran (New York University Stern School of Business) has posted “Equity Risk Premiums (ERP): Determinants, Estimation and Implications—The 2023 Edition.”
BV News and Trends March 2023
A monthly roundup of key developments of interest to business valuation experts.
Size effect is hibernating, per new paper
The size premium is more significantly related to monetary policy than to firm quality or to business cycle troughs, according to a new paper.
Damodaran examines impact of inflation on profitability
In his fifth data update for 2023, Professor Aswath Damodaran (New York University Stern School of Business) focuses on trends in company profitability in 2022, including the impacts of inflation.
Inflation appears to have peaked, per Kroll
The latest cost of capital infographic from Kroll says that inflation seems to have topped out toward the end of 2022.
Year-end 2022 data now in the Cost of Capital Professional
Year-end 2022 data, including equity risk premia, CRSP decile size premia, and industry betas/IRPs, are now available in BVR’s Cost of Capital Professional platform.
BV Year in Review 2022: Ongoing Challenges
What did you miss in 2022? Catch up on the highlights in the business valuation profession through over 70 articles and hundreds of news items this newsletter covered in 2022.
BVLaw Review: The Top Valuation Cases of 2022
Here is our pick for the most noteworthy valuation cases that emerged over the past year. They include state and federal court decisions covering many areas of law that enhanced our understanding of valuation issues as they arose in a litigation setting.
Damodaran posts his data update for 2023
At the beginning of each year, Professor Aswath Damodaran (New York University Stern School of Business) generously posts a great amount of data on his website that include risk-free rates, equity risk premiums (ERPs), corporate default spreads, corporate tax rates, country risk premiums, and other data—all of which are free.
BV News and Trends December 2022
A monthly roundup of key developments of interest to business valuation experts.
Estimating the Extra Risk of Customer Concentration
Interesting comments were made by Roger Grabowski (Kroll), who conducted a session at the American Society of Appraisers International Conference. He discusses the research in this area and how to examine the customer concentration of guideline public companies.
Ang Offers SSBV Members More Evidence of the Lack of a Size Effect
Clifford Ang (Compass Lexecon), who offered an impassioned plea to a large group from the UK’s Society of Shares and Business Valuers (SSBV), has become one of the leading proponents of eliminating or minimizing the traditional size premia. Ang has written a number of articles on the size effect and has a new book, Applied Valuation, due out early next year.
Inflation showcased in lead-off session at the AICPA FVS conference
As this issue rolls off the (virtual) presses, BVWire is attending the AICPA & CIMA Forensic and Valuation Services Conference.
Inflation, volatility trigger increase in ERP, per Kroll
Kroll has increased its recommended U.S. equity risk premium (ERP) from 5.5% to 6.0% when developing USD-denominated discount rates as of Oct. 18, 2022.
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.
In Search of a Steady State: Inflation, Interest Rates and Value, The (inflation) Genie Escapes the Bottle!
In this very special complimentary program with BVR, renowned financial guru Aswath Damodaran looks at where inflation expectations stand and where inflation might end up – from the potentially catastrophic to the (mostly) benign. Inflation is the culprit behind markets approaching bipolar territory with their big ups and downs, and it remains a highly unpredictable macroeconomic factor.
BV News and Trends May 2022
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends April 2022
A monthly roundup of key developments of interest to business valuation experts.
Kroll increases U.S. normalized risk-free rate to 3.0%
Kroll has increased its recommended normalized risk-free rate to 3.0% from 2.5%, effective April 7.
Twitter poll on the size effect
Wes Gray, a Ph.D., financial analyst, and CEO of Alpha Architect, recently conducted a poll on Twitter about the size effect (implicit in traded stocks where returns can be observed).