The Butler Pinkerton Calculator: An Update - BVMarketData

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Other BPC Applications (continued): In Search of the “True” Beta Beta Source Market Proxy Period Frequency Adjustment 1 Bloomberg Over 20 domestic series Adjustable Adjustable (0.67*OLS Beta)+(0.33*1.0) 2 Compustat S&P 500 5 years Monthly None 3 Ibbotson S&P 500 5 years Monthly Adjusted toward peer group beta weighted by stat. significance 4 Value Line NYSE Composite 5 years Weekly 0.35+0.67*OLS Beta 5 Yahoo!Finance S&P 500 3 years Monthly None 6 BPC 6 domestic series Adjustable Weekly - default None Adjustable - manual BPC rank 2nd Tied first 2nd Debatable Sources: Table 6-11, SBBI Valuation Yearbook and definitions from Yahoo!Finance. 22
Total Beta:BPC and Peer Review 1) Referenced in AICPA textbook written by G. Trugman, Understanding Business Valuation; 2) Referenced in PPC’s 19 th <strong>An</strong>nual Guide to Business Valuations; 3) Referenced in CCH’s Business Valuation Guide; 4) E-book in collaboration with Morningstar; 5) Current <strong>Update</strong> in Valuations/part of training material for NACVA; 6) Part of HBS Case Study; 7) Numerous independent endorsements and testimonials; 8) Can be proven with the Sharpe ratio. It is just CAPM theory for the undiversified investor; 9) Academic support; 10) More than 10 articles; 11) Numerous presentations; 12) Cost of Capital, 3 rd edition 23
Page 1 and 2: The Butler Pinkerton Calculator: An
Page 3 and 4: Let’s Get Some Things Out of the
Page 5 and 6: Traditional Factor Models: Use at O
Page 7 and 8: The Courts Want Empirical Data! •
Page 9: The Solution: Total Beta and the BP
Page 13 and 14: More Transparency 13
Page 15 and 16: Impeach Inferior Estimates of Cost
Page 17 and 18: Interesting Observation: “I Don
Page 19 and 20: Other BPC Applications: • First,
Page 21: Other BPC Applications (continued):
Page 25 and 26: Another Select Testimonial • We b
Page 27 and 28: Questions to Consider: • If Total
Page 29 and 30: The Butler Pinkerton Calculator: An
Page 31 and 32: Are You on the Left-side or the “
Page 33 and 34: Other Observations: Instability of
Page 35 and 36: Response to Roger Grabowski’s Sli
Page 37: Summary: • All models are wrong,

The Butler Pinkerton Calculator: An Update - BVMarketData

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