Fundamental Analysis
per Uniform Standards of Professional Appraisal Practice (USPAP)
- The nature and history of the business enterprise or intangible asset;
- The financial and economic conditions affecting the business enterprise or intangible asset, its industry, and the general economy;
- Past results, current operations, and future prospects of the business enterprise;
- Past sales of capital stock or other ownership interests in the business enterprise or intangible asset being appraised;
- Sales of capital stock or other ownership interests in similar business enterprises;
- Prices, terms, and conditions affecting past sales of similar ownership interests in the asset being appraised or a similar asset; and economic benefit of tangible and intangible assets;
- Buy-sell and option agreements, investment letter stock restrictions, restrictive corporate charter or partnership agreement, and similar features or factors that may influence value;
- Analyze the effect on value, if any, of the extent to which the interest appraised contains elements of ownership control and is marketable and/or liquid.
per United States Treasury Department Revenue Ruling 59-60
- The nature of the business and the history of the enterprise from its inception.
- The economic outlook in general and the condition and outlook of the specific industry in particular.
- The book value of the stock and the financial condition of the business.
- The earning capacity of the company.
- The dividend-paying capacity.
- Whether or not the enterprise has goodwill or other intangible value.
- Sales of the stock and the size of the block of stock to be valued.
- The market price of stocks of corporations engaged in the same or a similar line of business having their stocks actively traded in a free and open market, either on an exchange or over-the-counter.