Size premium in the practice of the Czech Republic

Přirážka za velikost v podmínkách České republiky

Radovan Fišer and Zuzana Meteláková

Oceňování, 2025, vol. 18, issue 1, 3-23

Abstract: The authors of this discussion paper deal with the small size premium as part of the cost of equity in income approach-based valuations in the practice of Czech Republic. By referencing to empirical professional publications and valuation textbooks the authors demonstrate the existence of a size effect and deal with arguments against the use of the small size premium, which the authors consider to be outdated. The authors also point to the usage of the size premium in Czech and foreign practice. Based on the analysis, the authors recommend including the small size premium in cost of equity estimates.

Keywords: Size premium; Discount rate; Income valuation approach; Přirážka za malou velikost společnosti; Diskontní míra; Výnosové ocenění (search for similar items in EconPapers)
JEL-codes: G30 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.18267/j.ocenovani.297

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