5.11 Discounting cashflows
This introductory section is focussed on the theory underlying discounting cashflows. Discounted cashflow is based on the principle that the... View Article
Read ArticleCategories for 5. Common Methodologies in Valuators’ Reports
5.10 Valuation methodology – capitalized cashflow method
The main principle behind the capitalized cashflow method is that the annual free cashflows generated by the enterprise and available... View Article
Read Article5.9 Valuation methodology – income methods
Given that the income generated by a business can be expressed in many ways and given that the value of... View Article
Read Article5.8 Valuation methodology – adjusted net asset methods
Adjusted net asset valuation methods are used when there is no likelihood of finding any goodwill in the company. These... View Article
Read Article5.7 Materiality in valuators’ reports
When a business valuator values a business using the capitalized cashflows method, he or she will exercise judgment in respect... View Article
Read Article5.6 Industry analysis in valuators’ reports
The analysis of the risks and prospects of the industry in which a business operates is an important part of... View Article
Read Article5.5 Taxes in valuators’ reports
At MVI we believe that complex tax issues are best handled by tax experts. This is both in the interest... View Article
Read Article5.4 Disposition costs in valuators’ reports
An informed and prudent buyer is unlikely to pay as much for the shares of a company as they would... View Article
Read Article5.3 Discount for lack of liquidity (marketability discounts)
It is common knowledge that the shares of publicly traded companies have a ready and usually liquid market. This liquidity... View Article
Read Article5.2 Discount for lack of control (minority discounts)
One of the major goals of a business valuation report is to conclude on the fair market value of all... View Article
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