GENERATING A DISCOUNT FOR LACK OF MARKETABILITY

摘要

A method, system, and medium for generating a double-probability-weighted discount for lack of marketability (DLOM) for an asset to be valued. Selections of parameters associated with the asset to be valued and of representative assets for which price data is available are received. A mean and standard deviation of marketing periods associated with the selected parameters and of price volatilities depicted by the price data are calculated. A statistical modeling application generates probability distributions based on the means and standard deviations of the marketing periods and of the price volatilities. DLOMs are calculated for each combination of marketing period and price volatility. The DLOMs are weighted based on the probabilities depicted by the probability distributions and summed to provide the double-probability-weighted DLOM, which is presented to the user via a user interface.

主权项

1. A computer-implemented method for generating a discount for lack of marketability (DLOM) for an asset to be valued, the method comprising:
receiving, by a computing device, a mean and a standard deviation useable to represent price data for the asset, the computing device having a processor and a memory and comprising one computing device or a plurality of computing devices communicatively coupled via one or more networks; transforming the mean and a standard deviation into a probability distribution representing a probability that the asset will have a particular price volatility value; and determining a DLOM for the asset using a formula and a price volatility value represented in the probability distribution.