3.01: Common terminology in valuators’ reports
As with most professionals, CBV’s happily use terminology that is commonplace in the profession. For other users of valuators’ reports... View Article
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3.02: Capital assets
Capital assets, sometimes referred to as Fixed Assets or Property, Plant and Equipment, are the long-term assets held by a... View Article
Read Article3.03: Capitalization rates
The fair market value of a business enterprise is usually calculated using the following formula (simplified): FMV of the enterprise... View Article
Read Article3.04: Discount rates
The fair market value of a business enterprise is sometimes calculated using a discounted cashflow method, (DCF) especially where the... View Article
Read Article3.05: EBITDA – Earnings before interest, tax and depreciation/amortization
EBITDA (Earnings before interest, tax and depreciation/amortization) is a metric that is popular with business brokers, mergers & acquisitions advisers,... View Article
Read Article3.06: En bloc value
En bloc value is the value of all the common shares of the company assuming all the said shares have... View Article
Read Article3.07: Enterprise value
The enterprise value of a business is the value of the operational business. The enterprise value is funded by all... View Article
Read Article3.08: Equity value
The equity value of a company is the value that is funded by the shareholders. In a fair market valuation... View Article
Read Article3.09: Fair market value
Fair Market Value (FMV) is a term that litters many valuators’ reports, especially in Canada and the USA (other jurisdictions... View Article
Read Article3.10: Fair market value adjustments to tangible assets
A business valuator is usually required to report on the fair market value of a business interest. However, much of... View Article
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