A Current View of the Restricted Stock Studies and Restricted Stock Discounts
Although there is relevant evidence in some restricted stock studies that can be helpful for marketability discount determinations, comparisons with average discount observations from these studies do not provide a meaningful methodology to estimate marketability discounts. We conclude this despite the fact that too many valuation analysts continue to rely on simplistic comparisons with averages of restricted stock discounts from dated studies in their marketability discount determinations.
The Fundamental Valuation Equation: Equity Basis
Shareholder-Level Discounted Cash Flow Model
Refined Levels of Value Chart
Refined Levels of Value Chart.
FMV/Stout Restricted Stock Data Base Market Capitalization of Equity by Quintile
FMV/Stout Two-Year Restricted Stock Database Selected Operating and Pricing Metrics
Conceptual Equivalency between Restricted Stock and Marketability Discounts
Definition and Calculation of Restricted Stock Discount
The Restricted Stock Discount
Fundamental Valuation Model: Restricted Shares
Reconciliation of Restricted Stock Transaction Price with Public Market Price
Restricted Stock Discounts from the Moroney Study (1993)
FMV/Stout Database: Implied Holding Period Premiums
Contributor Notes
Z. Christopher Mercer is chairman of Mercer Capital Management, Inc. Memphis, Tennessee. mercerc@mercercapital.com