18. Measures of Discount for Lack of Marketability and Liquidity
Published Online: 6 DEC 2011
DOI: 10.1002/9781118268179.ch18
Copyright © 2010 Rawley Thomas and Benton E. Gup. All rights reserved.
Book Title
The Valuation Handbook: Valuation Techniques from Today's Top Practitioners
Additional Information
How to Cite
Thomas, R. and Gup, B. E. (2009) Measures of Discount for Lack of Marketability and Liquidity, in The Valuation Handbook: Valuation Techniques from Today's Top Practitioners, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118268179.ch18
Publication History
- Published Online: 6 DEC 2011
- Published Print: 19 OCT 2009
ISBN Information
Print ISBN: 9780470385791
Online ISBN: 9781118268179
- Summary
- Chapter
- References
Keywords:
- equity interests;
- business valuation practice;
- risk-free rate;
- capital asset pricing model;
- publicly traded equivalent value
Summary
This chapter contains sections titled:
Publicly Traded Equivalent Value
Discounts for lack of Marketability and Discount for lack of Liquidity
Benchmarking Methods
Empirical Studies
Liquidity as a Pricing Factor
Distinction between Holding Period and Liquidation Period
Quantitative Approaches based on CAPM and Time Value
HistoricalMarket Liquidity Statistics
Price Pressure and Market failure
Measuring Asset Liquidity
Application of Time/Volatility (Option) Models to Discount for Lack Of Liquidity
Three Option based Models
Black-Scholes put (BSP)
Average Price Asian Put (AAP)
Look Back Put (LBP)
Conclusions
References