Calculator · Discounts

DLOM calculator

Answer four plain questions (what you are discounting, the company, the time until a sale, your conclusion) and get a suggested DLOM with its range, built the Damodaran way. Switch to the advanced view for every method: restricted-stock evidence, the bid-ask regression, option-pricing models, Mercer's holding-period model, weights and scenarios.

How the DLOM range is built

The restricted-stock approach uses the Silber regression with Damodaran's revenue-based size scaling; the bid-ask approach applies Damodaran's regression of spreads on firm characteristics. The option approaches price the cost of not being able to sell: a European put (Chaffe), a lookback put that gives an upper bound (Longstaff) and two average-strike puts (Finnerty, which cannot exceed about 32%, and Ghaidarov), using the industry volatility or your own. The page also asks for the basis of value: under IFRS 13 fair value a blockage discount is not permitted, and under market value owner-specific restrictions are excluded.

The results are shown side by side with their assumptions, and the concluded DLOM and its basis are recorded in the input register. IVS 103 para A10.17(a) recognises option models and restricted-stock studies as reasonable methods; the Equity bridge applies the concluded figure.

Related: Equity bridge calculator · Option pricing calculator · Bases of value · Model notes

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