Harry, Howe; E, Lewis Eric; W, Lippitt Jeffrey - In: Journal of Business Valuation and Economic Loss Analysis 2 (2007) 1, pp. 1-10
The Excess Earnings Method requires the estimation of two capitalization rates, and the difficulty of estimating these has been suggested as a deterrent to greater use in business valuations. This paper presents a mathematically-derived set of formulas which allow the valuator to derive...