COMMONLY USED METHODS OF VALUATION Fundamentals, Techniques & Theory
42 – Chapter Six © 1995–2011 by National Association of Certified Valuators and Analysts (NACVA). All rights reserved.
2012.v1 Used by Institute of Business Appraisers with permission of NACVA for limited purpose of collaborative training.
In addition to the foregoing chapter of Fundamentals, Techniques and Theory, there are other
sources of information that many professionals in the valuation business have read and/or added to
their library. The valuation analyst, progressing through the steps in a valuation, should be generally
familiar with the body of knowledge represented by this text and other publications. These can
include books, papers, articles, seminars, classes and the experience of a valuation mentor or other
business mentor the valuation analyst may know. Those at the top of the field continue to grow.
Recommended reading includes, but is not limited to:
Abraham, Mel H., Valuation Issues and Case Law Update, all cases.
Abrams, Jay, Quantitative Business Valuation, A Mathematical Approach for Today’s
Professionals, Part III (Adjusting for Control and Marketability).
Burkert, Rodney P., “In Defense of the Adjusted Net Asset Methodology for Small Operating
Companies,” The Valuation Examiner, D/J 1999.
Campbell, Ian R., and Howard E. Johnson, The Valuation of Business Interests, Chapter 5
(Discounted Cash Flow Methodology), Chapter 6 Asset Valuation Methodologies) and
Chapter 9 (Comparative Analysis).
Copeland, Tom, et. al., Valuation Measuring and Managing the Value of Companies, Part
Three (Applying Valuations).
Elmaleh, Michael S., “The Income Method of Valuation, A False Analogy between Bonds
and Stocks,” The Valuation Examiner, J/A 2003.
Gulden, Allen J., “Are We Understanding Unsystematic Risk Premium?”, The Valuation
Examiner, N/D 2001.
Hanlin, W. A. and J. R. Claywell, The Value of Risk, all sections.
Hitchner, James R., Financial Valuation Applications and Models, Chapter 4 (Income
Approach), Chapter 6 (Market Approach), and Chapter 7 (Asset Approach).
Kasper, Larry, “Excess Earnings or “Formula” Method for Estimating Goodwill and The
Value of a Business” (in 2 parts), The Valuation Examiner, J/F 1996.
Kern & Compton, “Risk Differential Related to Company/Market Comparison”, The
Valuation Examiner, J/F 1003.
King, Alfred, Valuation: What Assets Are Really Worth, Chapter 5 (Cost Approach to Value),
Chapter 6 (Income Approach to Value), Chapter 7 (Market Comparable Approach to Value)
and Chapter 16 (Adopting SFAS 141 and SFAS 142).
Mercer Capital, Valuation for Impairment Testing – Compliance with SFAS 142, all chapters.
NACVA, Restricted Stock Studies, 3rd Edition, all parts.
Norton, George M., Valuation Maximizing Corporate Wealth, Chapter 6 (Evaluate
Alternative Approaches).
Pratt, Shannon P., R. F. Reilly and R. P. Schweihs, Valuing a Business, The Analysis and
Appraisal of Closely Held Companies, Part III (Business Valuation Approaches and
Methods).
Pratt, Shannon, The Market Approach to Valuing Businesses, all chapters.
Reibling, Michael C., “Discounted Cash Flows versus Income Approach,” The Valuation
Examiner, M/A 2003.
Zamucen, Stephen M., How to Value Over 100 Closely Held Businesses Third Edition, all
chapters.