The Market or Comparables Approach

10 June 2021
Dr. Richard Hern, Zuzana Janeckova, Yue (Jim) Yin, et al.

The market or comparables approach is one of three main valuation approaches commonly used when assessing the quantum of damages in international arbitration. However, challenges arise when applying a comparables-based valuation framework and finding relevant market comparators.

As part of our International Arbitration White Paper Series, NERA Economic Consulting Managing Director Dr. Richard Hern, Senior Consultant Zuzana Janeckova, Consultant Yue (Jim) Yin, and Research Officer Konstantinos Bivolaris have published a chapter titled “Market or Comparables Approach” in Global Arbitration Review’s latest Guide to Damages in International Arbitration

In their paper, the authors discuss the key steps of a standard comparables valuation approach, as well as:

  • Present two case studies illustrating the application of the comparables valuation method;
  • Debate when the method is most appropriate; and
  • Share possible extensions to a standard comparables valuation approach that can be used in arbitration cases.

This is the third paper in NERA’s International Arbitration White Paper Series, which aims to cover a range of international arbitration topics from the perspectives of economists and expert witnesses. To learn more and read the series, please click here