The new Italian valuation principles should also be used for equity instruments

01/10/2015

Franco Carlo Papa (Chairman of PGS Consulenti) underlines the need for valuation experts to consider all privileges, including capital or administrative rights, in order to provide a proper estimate of the value of equity instruments. The existence of privileged capital rights, as indicated by the new Italian valuation principles (PIV), leads to a non-proportional distribution of the flows generated by the company between the different categories of instrument and of asset value following a liquidity event.

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