The Transactional Asset Pricing Approach: Its Application in Professional Business Valuation and Fair Value Theories

TALK TO IVSC-ANEVAR INTERNATIONAL BUSINESS VALUATION CONFERENCE Bucharest, Romania, 7 Sept, 2018

Posted: 30 Aug 2018

See all articles by Vladimir B. Michailetz

Vladimir B. Michailetz

Russian Society of Appraisers

Andrey I. Artemenkov

Westminster International University in Tashkent (WIUT); Ariel University

Date Written: August 21, 2018

Abstract

In this Working Paper we provide a review of The Transactional Assets Pricing Approach (V. Michaletz (2005a), V. Michaletz, A. Artemenkov & I. Artemenkov (2007), V. Michaletz & A. Artemenkov (2018)) and chart its practical areas of applicability within the continuum of existing Economic Measurement specialisms. In particular, we provide an example of its application to valuing a business against the S&P 500 benchmark (with the use of the TAPA's Basic pricing Equation and of the "Quick model") and highlight the relevance of TAPA to providing valuations performed on the basis of Eqitable/Fair Value, as this basis of valuation is defined in the IVSs 2017 edition. The Paper concludes that the characteristics of the IVS-compliant Professional valuation, as of a discussed specialism within Economic Measurements, render the TAPA framework particularly amenable to applications within this field.

Keywords: Transactional Assets Pricing Approach (TAPA), Direct Income Capitalization, DCF Analysis, Economic Measurements, Multi-Period Discount Rates, Gordon Growth Model, Income Approach, Investment-Financial Valuation, Inwood Model, Ring Model, Professional Valuation, Valuation Benchmark

JEL Classification: G12, D46

Suggested Citation

Michailetz, Vladimir B. and Artemenkov, Andrey I., The Transactional Asset Pricing Approach: Its Application in Professional Business Valuation and Fair Value Theories (August 21, 2018). TALK TO IVSC-ANEVAR INTERNATIONAL BUSINESS VALUATION CONFERENCE Bucharest, Romania, 7 Sept, 2018 , Available at SSRN: https://ssrn.com/abstract=3236135 or http://dx.doi.org/10.2139/ssrn.3236135

Vladimir B. Michailetz

Russian Society of Appraisers ( email )

21-1, ul. Novaya Basmannaya
Moscow, 107978
Russia

Andrey I. Artemenkov (Contact Author)

Westminster International University in Tashkent (WIUT) ( email )

12 Istiqbol St
Tashkent, 100047
Uzbekistan

Ariel University ( email )

Israel

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