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1. Market Approach
The market approach values a company’s nonpublicly traded
stock by using one or more methods to compare that stock to the
same or comparable stock that has sold in arm’s-length
transactions in the same timeframe. The nonpublicly traded stock
subject to valuation is valued by adjusting the sales price of
the same or comparable stock to reflect any differences between
that stock and the nonpublicly traded stock.
2. Income Approach
The income approach values a company’s nonpublicly traded
stock by using one or more methods that convert anticipated
economic benefits into a single present amount. Valuation
methods under this approach may directly capitalize earnings
estimates or may forecast future benefits (earnings or cashflow)
and discount those future benefits to the present.
3. Asset-Based Approach
The asset-based (or cost) approach values a company’s
nonpublicly traded stock by using one or more methods which look
to the company’s assets net of its liabilities.
IV. Value of the Subject Shares
The stock of Glenwood Bank was not publicly traded. Thus,
we look first to see whether there were any arm’s-length sales of
that stock near the applicable valuation date. Because neither
coexecutor elected to value the estate’s property under section
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