And Runaway Valuations In a discounted cash flow analysis, a large portion of a firm’s value is typically attributed to the terminal value, i.e., the value beyond the projection period. Valuation presentations often show or discuss what happens to the firm’s value if the perpetuity growth rate (PGR) is changed. In this sensitivity analysis, it is common to see wild swings in valuations because the terminal ...

Is Not Debatable This article explains why the undiscounted terminal value as of a future date must be discounted back by (a) N – 0.5 years when the traditional perpetuity method with a mid-period convention is used, (b) N years when the traditional perpetuity method with an end-of-period convention is used, or (c) N years when an exit multiple is used. ...

SSRN Journal of Wills, Trusts, & Estates Law — Top 10 Papers Downloaded Nov-January Include Pieces on Valuation Discounting, Tax-Deductible Conservation Easements,  and More The Wills, Trusts & Estates Prof Blog reports  the top downloads from November 21, 2012 to January 20, 2013 from the SSRN Journal of Wills, Trusts, & Estates Law for all papers announced in the last 60 days.  Here are the to ...

More: A Case in Texas Turns on a Husband and Wife with Differing Appraisals of a Business That’s Declined in Value Peter Agrapides gathers recent federal cases bearing on valuation and family law. In Georgia, a county issues bonds to finance a regional warehouse built by the corporation; the parties agree to use a certain valuation methodology, and since agreement is mentioned in the lease, the Georgia Cour ...