Butler Pinkerton Calculator passes a Daubert challenge
The BPC passed its first Daubert challenge in mid-December 2010 in Alamar Ranch, LLC v. County of Boise, a decision by the United States District Court (Idaho)(Civil Case No. 1:09-cv-00004 BLW). In response to the challenge, Peter Butler (Valtrend) submitted an affidavit listing the numerous instances of independent peer comments, articles, speaking engagements as evidence [...]
A mathematical view of the Butler Pinkerton Calculator
Gary Schurman (Applied Business Economics) discusses the derivation of the theory behind the Butler Pinkerton Calculator in his article, “Derivation of The Butler-Pinkerton Model.” Schurman presents the financial theory behind a private company beta (also known as total beta or adjusted total beta) to account for sub-optimal diversification (no diversification or partial diversification). Click here [...]
Free resource accounts for portfolio diversification factor in total cost of equity (TCOE) analyses
Earlier today BVR updated FAQ 46i on the Butler-Pinkerton Calculator’s FAQ page which addresses concerns that the BPC metrics stem from an undiversified portfolio perspective. This FAQ includes a link to a spreadsheet that helps to account for the average diversification of a hypothetical buyer pool. The spreadsheet has been updated, simplified and posted online.
RJ Dragon compares Butler Pinkerton Calculator debate to “thrilla in Manila”
We’ll all have to wear boxing equipment to the next ASA meeting! Click here to read RJ’s blog.
Toyota offers appraisers a chance to watch beta change in “real time”
Toyota Motor Company’s recent safety concerns present an extraordinary chance to see how betas and cost of capital change, comments Pete Butler. ”This has been a rather quick and precipitous fall from grace, but it is also a testament to how quickly goodwill and an impeccable reputation can evaporate,” Pete points out. Looking at the market [...]
BPC adds German Stock Exchange data
The Butler Pinkerton Calculator™ recently added data from the Canadian Exchange, and now appraisers can access the German stock index. Jim Catty (Chair of the International Association of Consultants Valuators and Analysts, IACVA) encouraged the addition, indicating that IACVA will soon be updating their instructional materials for Germany (and the U.K. may not be far behind…) Step [...]
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