This program will start by reviewing the elements of a pricing multiple. Specifically, we explore the components that makeup capitalization rates. By breaking down the modified CAPM, we explain how differences in size and capitalization can be incorporated directly into pricing multiples. We then walk through a prebuilt model that automatically applies these pricing multiple adjustments.
Multiple selection is a highly subjective requirement of the guideline public company method. By incorporating adjustments driven by objective criteria, we reduce the subjectivity of the method and temper the burden of justification on the valuation analyst.
Program Agenda
A brief overview of the guideline public company method and the challenges of applying this method;
Deep dive into the components of a capitalization rate and the modified CAPM;
Detail the explicit adjustment of pricing multiples for size and capitalization differences; and
Provide a demo of the Value Analytics template to guide users on how to use these adjustments easily.
Learning Objectives
Participants will learn how to restate pricing multiple in terms of risk exposures;
Participants will learn how to adjust components of the modified CAPM to incorporate differences in size and capitalization; and
Participants will learn how to use a prebuilt tool to apply these adjustments.
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customerservice@bvresources.com.
