Preliminary factors to consider when conducting a valuation of a business enterprise.
per Uniform Standards of Professional Appraisal Practice Standard 9-4
The nature and history of the business enterprise or intangible asset;
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 similar assets;
Economic benefit of tangible and intangible assets.
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.
Frequently applied guidance per Financial Accounting Standards Board (FASB)