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Deja Vu #10: Valuation Theory is the Same for Businesses and Business Interests: V =f(CF, G, and R)

Chris Mercer

Business appraisers routinely use the discounted cash flow model to value entire businesses. Deja Vu #9: Pre-IPO Discounts Do Not Provide Valid Evidence for Marketability Discounts. The Discounted Cash Flow Model for Businesses. The Discounted Cash Flow Model for Interests of Businesses.

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Will the IPO of ABB’s E-Mobility division give the share price a new boost?

Valutico

ABB performed particularly well in the COVID years 2020-2021, almost doubling its share price during this period. At this level the dividend yield is 2.8%. . We analyzed ABB by using the Discounted Cash Flow method, specifically our Flow to Equity approach, as well as a Trading Comparables analysis.

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Will the IPO of ABB’s E-Mobility division give the share price a new boost?

Valutico

ABB performed particularly well in the COVID years 2020-2021, almost doubling its share price during this period. At this level the dividend yield is 2.8%. . We analyzed ABB by using the Discounted Cash Flow method, specifically our Flow to Equity approach, as well as a Trading Comparables analysis.

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USPAP Standards Rule 9-4 Creates a Problem for Business Appraisers

Chris Mercer

I have focused on the changes and additions, which remain essentially unchanged in the 2020-2021 USPAP (the current version). ” The definition remains unchanged through 2020-2021 USPAP. The Quantitative Marketability Discount Model (QMDM) is one of them. The QMDM is a shareholder level discounted cash flow model.

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Intact Financial Corporation and RSA to acquire Direct Line Insurance Group plc's brokered Commercial Lines operations

Benzinga

Direct Line's brokered Commercial Lines generated written premiums 4 of £530 million in 2022, and delivered an average combined ratio 5 6 of approximately 96% across 2021 and 2022. 2 IRR is the discount rate that makes the net present value of all cash flows equal to zero in a discounted cash flow analysis.

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Good (Bad) Banks and Good (Bad) Investments: At the right price.

Musings on Markets

The first was that banks were run by sensible people , who paid out what they could afford to in dividends, neither holding back on paying dividends nor paying too much in dividends. Note the differences between the bank FCFE and bank dividend discount models.

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