Archives

Continuing on in our series on business valuation standards and marketability discounts, we discuss valuation methods under the income approach.

Concentrations can affect value. What does this mean for Zynga and Facebook?

We continue our discussion of business valuation standards as they related to marketability discounts with a discussion of valuation methods under the market approach.

The standards suggest consideration of all three approaches when developing marketability discounts, including the asset approach. I am not aware of any traditional method for determining marketability discounts that fall under the asset approach. Nevertheless, the guidance of PG-2 suggests that we think about the applicability of the asset approach when valuing minority interests.

In this post, we introduce the standards of the major business valuation professional associations and then discuss how the standards define a marketability discount as well as the concept and application of discounts and premiums. We end this post with an introduction to the three basic valuation approaches: asset, market, and income.

What is the number of shares outstanding of Facebook and why does it matter?

This post develops a conceptual overview of the market approach for developing the largest valuation discount, the marketability discount.

Thursday afternoon (July 26th), Facebook released its earnings for the second quarter of 2012, and had an earnings call at 5pm that day.  Suffice it to say that the markets’ reception was one of disappointment. On Friday, Facebook shares dropped some 12% to $23.70 per share.  On Monday (July 30), the stock dropped further, closing […]

Recognizing the particular characteristics of any given trust company is essential to understanding its value in the marketplace.
Matthew R. Crow, CFA, ASA and Brooks K. Hamner, CFA of Mercer Capital recently authored this updated whitepaper. Download your complimentary copy.

In this installment on the marketability discount, we tackle the topic of marketability discounts and the income approach. The post is long and theoretical but the topic demands it.