Not logged in.

Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title The Choice of Valuation Techniques in Practice: Education Versus Profession
Organization Unit
Authors
  • Lilia Mukhlynina
  • Kjell G. Nyborg
Item Subtype Original Work
Refereed Yes
Status Published in final form
Language
  • English
Journal Title Critical Finance Review
Publisher Now Publishers Inc.
Geographical Reach international
ISSN 2164-5744
Volume 9
Number 1-2
Page Range 201 - 265
Date 2020
Abstract Text We use a survey approach to learn about valuation professionals’ choices and implementations of valuation techniques in practice. Most use both multiples and DCF, but implement DCF in a way that almost turns it into a multiples exercise. Confusion reigns with respect to interest tax shields and the WACC. Higher educational levels do not reduce the confusion. The survey design allows us to control for a respondent’s professional subgroup(e.g., consulting), education, experience, and valuation-purpose characteristics. We find that profession matters more than education; different professions have different valuation cultures. Other factors are less important. The relative unimportance of education raises questions about the role, benefit, and optimal mode of higher level finance education.
Related URLs
Digital Object Identifier 10.1561/104.00000088
Other Identification Number merlin-id:16862
PDF File Download from ZORA
Export BibTeX
EP3 XML (ZORA)
Additional Information Swiss Finance Institute Research Paper No. 16-36