BV197-WEB - Volatility Adjustments for Industry, Size and Leverage

Registration

Please see the "Upcoming Classes" tab for class offerings and registration information.

Webinar Course Description

The webinar will focus on the theory and application of industry, size and leverage adjustments for estimating equity volatility. We will start with discussing basic concepts around applying volatility estimates in valuation, covering common pitfalls when calculating the basic volatility measure. We will discuss differences between equity and asset volatilities, and discuss typical methodology for unlevering equity volatilities. Volatility adjustment examples will be provided and discussed. Upon completion of the webinar, participants should be able to adjust equity volatilities appropriately in most valuation settings.

Recommended Pre-Reading

The Impact of Size and Leverage on Equity Volatility, BVR, Volume 37, Issue 3 (Fall 2018)

Equity Volatility Size Adjustments by Industry, BVR, Volume 37, Issue 4 (Winter 2018)

Course Audience

Business valuation and financial instrument valuation specialists

NASBA and Continuing Professional Education (CPE) Credit

The American Society of Appraisers is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website www.learningmarket.org.

CPE Credit: (2) Hours in Specialized Knowledge
Program Level: Advanced
Delivery Method: Group-internet based courses are approved for CPE
Prerequisites: None
Advanced Preparation: None
Policies: ASA's Refund and Cancellation Policy and ASA's Complaint Resolution Policy

Instructor Information

James Herr , ASA | Senior Director | Alvarez & Marsal

James Herr is a Senior Director with Alvarez & Marsal Valuation Services based out of Houston. Mr. Herr has provided valuation and financial modeling consulting services for more than 15 years. During that time he has performed hundreds of valuation engagements.Prior to joining Alvarez and Marsal Valuation Services, Mr. Herr was a Director at PricewaterhouseCoopers, where he specialized in performing valuations for clients in the Energy and Mining Sectors. Prior to that, James was a Corporate Finance Director in KPMG’s Moscow office. He also served as a Vice President at BDO in Los Angeles. He began his career in litigation, working for an economics consulting practice in the Bay Area, where he supported and performed work as an expert witness.

James holds a BS in Economics and Russian from Brigham Young University, a Master of Economics from the University of California at Berkeley, and an MBA with an emphasis in accounting from the California State University at East Bay. He is a Chartered Financial Analysis charter holder and an Accredited Senior Appraiser with the American Society of Appraisers.

Agenda

The following topics are covered in this course:

• Basic volatility concepts
• Historical vs. implied volatility
• Theoretical justification for adjusting volatility
• Application of adjustments through specific examples/case studies

Learning Outcomes

Upon completion of this course,students will be able to:

• Adjust equity volatilities for industry, size and leverage;
• Become familiar with the key concepts in applying volatilities in a valuation setting;
• Improve awareness for situations where equity volatility adjustments may not be applicable; and
• Understand and avoid common pitfalls in volatility estimation.