by Simon Cook | Feb 17, 2019 | Business Valuation
I like Professor Damodaran’s simple Bermuda triangle of valuations. According to the Professor, the three simple truths of valuation (the sides of the triangle) are: All valuations are biased. You just need to think about how you are biased and by how much. Be aware...
by Simon Cook | Nov 14, 2018 | Business Valuation
risk /rɪsk/ — a situation involving exposure to danger, from Italian risco “danger” Business value is a function of the future expected cash flows from the business and the risk attached to those cash flows. The value of a business is the present value of future cash...
by Simon Cook | Nov 3, 2018 | Business Valuation
Marketability discounts are often applied by business valuation experts to reflect the difficulty in selling shares in a private business compared to selling shares in a publically listed company. You can sell shares in a listed stock at the click of a button, with a...
by Simon Cook | Oct 25, 2018 | Business Valuation
The similarities between valuing and selling a business and valuing and selling art. Leonardo da Vinci’s Salvator Mundi (“Saviour of the World”) was sold last year for $450 million. $450 million! Only sixty years earlier the painting sold for just $60. Can there be...
by Simon Cook | Oct 24, 2018 | Business Valuation
An earnings multiple may be used to provide a guide to the valuation of a business. The relevant earnings base is multiplied by the earnings multiple to arrive at the business valuation. The earnings multiple reflects the risk attached to future earnings. The lower...
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