article thumbnail

Deja Vu #11: Can Restricted Stock Studies Be Used to Estimate DLOMs for Dividend-Paying Companies?

Chris Mercer

This eleventh post in the Deja Vu series involving restricted stock studies addresses an issue that is rarely mentioned in the context of the studies – of the impact of dividends on restricted stock discounts (RSDs). Of these 244 transactions, only 24 involved companies that paid dividends, or less than 10% of the transactions.

article thumbnail

No Marketability Discounts or Discounts for Illiquidity for Controlling Interests of Companies

Chris Mercer

Indeed, it is embedded in the pricing information from this market, which often forms they basis of comparison in valuing a subject interest.” (P. ” The International Valuation Glossary – Business Valuation (“the Glossary”) provides definitions of liquidity and marketability and their related discounts.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Data Update 1 for 2024: The data speaks, but what does it say?

Musings on Markets

I have also developed a practice in the last decade of spending much of January exploring what the data tells us, and does not tell us, about the investing, financing and dividend choices that companies made during the most recent year. Dividends and Potential Dividends (FCFE) 1. Return on (invested) capital 2.

article thumbnail

Data Update 2 for 2023: A Rocky Year for Equities!

Musings on Markets

The first is the dividends you receive, while you hold stocks, a cash flow stream that provides a measure of stability to investors who seek it. trillion in market capitalization, but for balance, it is also worth noting that US equities are still holding on to a gain of $6.9

Equity 70