IAC22 BV - Matching Risk and Return: Updated Observations on Developing Discount Rates

Session Description

Valuators often compare a subject company to guideline public companies in developing their discount rates. But what do you do when the characteristics of the subject differ from the guideline companies? We understand how to adjust for differences in size. But what about differences in growth, profit margins, etc.? How do we adjust if we are doing a lost economics profits analysis and the risks of the lost profits differ from those of the entire business? This session will discuss data that can be used to better adjust for differences in risk.

Speaker

Roger J. Grabowski, FASA
Managing Director, Valuation Services - Kroll LLC

Continuing Education

Review of this session recording will award 1.5 CE hours. 

CPE credit is not awarded for this pre-recorded offering.