Comparable Valuation: The Discount for Illiquidity
Interactive

Comparable Valuation: The Discount for Illiquidity

Intuition Publishing
Updated Sep 24, 2020

Thinly traded stocks and stocks of companies with little free float often trade at a substantial discount to their fair value because of their lack of liquidity. Here we examine the reasons behind illiquidity and show how to determine the size of the discount for it.

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