CHICAGO, Jan. 8, 2003 (PRIMEZONE) -- Ibbotson Associates, a leading provider of investment tools and knowledge, today announced a valuation certification report service. The company will now review the processes used by valuation practitioners and legal experts to derive cost of capital estimates using Ibbotson data and provide a letter of approval. This service will enhance the credibility of a valuation analysis and can reduce the likelihood of legal challenges.
"Ibbotson has long been a leader and pioneer in cost of capital data and analysis. The company's Valuation Yearbook is one of the most frequently cited sources in valuation reports," said Michael Barad, Manager of Valuation and Legal Services. "Our new certification service can add credibility to an analysis; catch errors before final submission; or identify weaknesses in a challenger's analysis."
Ibbotson will not approve a specific cost of capital estimate, but rather the process used to derive the estimate. The company will evaluate each valuation report within the standards of an open framework, recognizing differences in the manner in which the data can be applied. After review, Ibbotson will respond with a letter that states that the estimation process is 1) approved as is, 2) approved if certain conditions are met, or 3) not approved because... Results will be kept confidential.
About Ibbotson Associates
Ibbotson Associates, founded by Professor Roger Ibbotson in 1977, is a leading authority on asset allocation, providing products and services to help investment professionals obtain, manage and retain assets.
The company's business lines include investment and cost of capital consulting and research; planning and analysis software; wealth forecasting; educational services and a widely used line of NASD-reviewed presentation materials. With offices in Chicago, New York and Tokyo, Ibbotson Associates provides integrated investment knowledge, leading-edge technology, multi-conceptual education and a variety of sales presentation solutions. Ibbotson markets its integrated product line of investment analytical tools and services to institutional money managers, plan sponsors and consultants for quantitative analysis, high level decision making and presentations. The company's clients also include financial planners, brokers, mutual fund firms, private bankers and small money managers.