BV202 OnDemand: NEW! Introduction to Business Valuation - Income Approach

General Information

This OnDemand course offers students convenient 24/7 online access to instructional modules via "My Education Dashboard" immediately following registration. 

Experience our fully revamped course, packed with practical applications, real-world scenarios, and interactive features, including:

• Immersive Learning Experience
  
• Revamped Course Structure
  
• Engagement-Focused Delivery
  
• Narrated instructional modules, self-paced reading, and video content
• Downloadable PDF course handouts and additional reading materials
  
• Practice knowledge checks to reinforce learning

The course curriculum is followed by a final exam that must be completed within 90 days of purchase. An additional 90-day extension is available upon request by contacting education@appraisers.org (a non-refundable fee applies). The final exam is multiple-choice, securely administered online, and remotely proctored. Final exam scheduling information will be available after all course modules are completed and can be found in the NEXT STEPS section. If you have any questions or concerns, please contact education@appraisers.org. Once the course and downloadable materials have been accessed, the course is non-refundable. For more course information on course cancellation, transfers or refunds, refer to ASA's education Policies, Procedures, and FAQs.

ASA-accredited members (AM, ASA, FASA) can sign up for this course at a 50% discount, which will be automatically applied at checkout.

Course Requirement

The Valuing a Business, 6th Edition Book is required for the BV Principles of Valuation courses (BV201-BV204) and can be purchased as an electronic pdf copy, or hard copy via the ASA Shop.

Continuing Education and Contact Hours

28.8 ASA CE Instructional Hours and 3 Exam Hours | CPE hours are not awarded for this offering.

Course Description

Brand New OnDemand Course – Immersive, Engaging and Dynamic

Building on the foundational principles introduced in BV201, BV202 immerses students in the income approach, a critical valuation methodology that sharpens analytical precision and decision-making. This newly redeveloped course delivers a deep dive into the three fundamental drivers of valuation—whether for financial reporting, litigation, tax-related valuations, or other purposes:

• Benefit Streams – Understanding and analyzing income sources
• Risk & Discount Rates – Assessing uncertainty and its impact on value
• Growth – Evaluating future potential and sustainability

Instructional Methods

Methods include integrated videos, animations, and interactive tools that bring concepts to life.

Course Audience

BV202 is one of four Principles of Valuation (POV) courses required for those seeking a credential with ASA.  In addition, this course is also of interest to accountants, attorneys, business brokers, investment bankers, Internal Revenue Service staff and the appraisal community at large who are involved or interested in the valuation of businesses.

Learning Level 

Fundamental 

Upon completion of this course, students will be able to:

• Assess the applicability of different Income Approach methods to a specific assignment;
• Define, explain, and assess the applicability of alternative benefit streams;
• Determine and make necessary normalization and control adjustments to financial statements; 
• Evaluate management projections; perform independent financial projections if necessary;
• Differentiate and apply the capitalization of benefits and discounted future benefits methods of valuation under the income approach;
• Develop equity and invested capital discount rates;
• Apply and reconcile the results of the build-up and modified capital asset pricing models;
• Develop estimates of the risk free rate, the equity risk premium, beta, the industry risk premium, and the size premium from recognized sources;
• Identify and evaluate unsystematic risk (company specific risk);
• Summarize the derivation and use of data from Morningstar's Stocks, Bonds, Bills, and Inflation and the Duff & Phelps Risk Premium Report;
• Discuss controversies involved in key discount rate components, the equity risk premium and the company specific risk premium;
• Identify the principles behind an asset approach;
• Describe circumstances where the application of and reliance on the asset approach might be appropriate;
• List the hierarchy of assets and returns on those assets;
• Apply asset approach valuation methods;
• Explain the concepts behind the excess earnings model and their relevance to specific valuation assignments;
• Communicate the difference between the traditional excess earnings method and the multiple period excess earnings method related to valuing intangibles;
• Perfom an asset approach valuation using the net asset value with the excess earnings method; and
• Determine the level of value resulting from the use of each income method and each asset method.