Oceňování 2025, 18(1):3-23 | DOI: 10.18267/j.ocenovani.297

Size premium in the practice of the Czech Republic

Radovan Fišer, Zuzana Meteláková
Mgr. Radovan Fišer, Deloitte Advisory s.r.o.
Mgr. Zuzana Meteláková, Deloitte Advisory s.r.o.

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of a size effect and deal with arguments against the use of the small size premium, which the authors consider to be outdated.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
JEL classification: G30

Published: September 1, 2025  Show citation

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Fišer, R., & Meteláková, Z. (2025). Size premium in the practice of the Czech Republic. Oceňování, 18(1), 3-23. doi: 10.18267/j.ocenovani.297
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