Valuation - fractional vs unit techniques, Valuation approaches
Some unit valuation methods may extract empirical pricing data directly from the capital markets (that is, the markets for publicly traded stock and bond securities). Analytical difficulties associated with the direct use of stock market data in the appraisal of operating business assets are discussed in this article. In order to avoid these issues, unit valuation methods such as direct capitalization and stock and debt should be used without reliance upon stock prices. An alternative is to use unit valuation methods such as yield capitalization and cost methods exclusively or give them a very high weight in the valuation synthesis and conclusion.
Reilly, Robert F.
"Issues related to the use of stock market data in the appraisal of business assets,"
Assessment Journal: Vol. 6:
3, Article 2.
Available at: https://researchexchange.iaao.org/assessment_journal/vol6/iss3/2