Editorial Type:
Article Category: Research Article
| Online Publication Date: 01 Jan 2006
The Guideline Publicly Traded Company Method and the Market Value of “Invested” Capital: Should Market Value of “Stakeholder” Capital be the Appropriate Reference?
The Guideline Publicly Traded Company Method and the Market Value of “Invested” Capital: Should Market Value of “Stakeholder” Capital be the Appropriate Reference?
ASA, CFA,
ASA, CFA, and
CPA/ABV, ASA, CVA
Page Range: 78 – 82
If a business appraiser ignores the value of employee stock options when calculating the market value of invested capital (MVIC) for guideline publicly traded companies, the appraiser may significantly undervalue his or her subject company, all else being equal.Abstract
Copyright: © 2006 American Society of Appraisers
Contributor Notes
Peter Butler, ASA, CFA, Keith Pinkerton, ASA, CFA, and Dennis Reinstein, CPA/ABV, ASA, CVA, work in the Financial and Valuation Services Division of Hooper Cornell, a full-service CPA firm in Boise, Idaho.