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| Size and Capitalization Adjustments for Market-Based Pricing Multiples (1648Q) |
Course CPE: 1 hour
Field(s) of Study: Finance–1 hr
Program Level: Intermediate
Prerequisites: Previous training or research on subject matter being taught. Such persons are often at a mid-level within the organization, with operational and/or supervisory responsibilities.
Advanced Preparation: None
Delivery Method: QAS Self-Study
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Item
Number: 22BV1215SCA
Shipping Weight: 0lbs. 0oz. |
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$99.00 |
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Recording Date: December 15, 2022
Presenter: Derek Zweig
Program Description:
The presenter describes an approach for adjusting market-based equity and firm-level pricing multiples for differences in size (market capitalization) and capital structure. All size and capitalization adjustments are channeled through the modified capital asset pricing model, which is relied upon for estimating cost of equity. The impact of size and capitalization on the cost of equity manifests itself through the size premium and the systematic risk coefficient, respectively. The Practitioners’ method is used to incorporate leverage into the systematic risk coefficient.
After completing this course, you will be able to:
- Identify the decomposition of pricing multiples into components
- Recognize an approach to reduce subjectivity in pricing multiple selection
Such an approach will improve application of the guideline public company method.
For more information regarding refund or concerns, please contact our offices at (800) 677-2009.
The Consultants’ Training Institute (CTI) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
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