BV197-WEB - Volatility Adjustments for Industry, Size and Leverage
Category: Business Valuation
Continuing Education: 2
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.
No prerequisites for this course.
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.