{"id":26476,"date":"2021-09-04T17:46:53","date_gmt":"2021-09-04T17:46:53","guid":{"rendered":"https:\/\/cfibv.org\/?p=26476"},"modified":"2025-10-13T11:47:53","modified_gmt":"2025-10-13T11:47:53","slug":"complexity-score-discounting","status":"publish","type":"post","link":"https:\/\/sandbox.myfuse.education\/cfibv\/2021\/09\/04\/complexity-score-discounting\/","title":{"rendered":"Complexity Score Discounting"},"content":{"rendered":"\n<p>Hi everyone,<\/p>\n\n\n\n<p>Hope all is doing well.&nbsp; A very well-respected valuator asked me if I knew of Dr. Damodaran\u2019s Complexity Score discount model.&nbsp; I responded with an affirmative no but it definitely piqued my interest.&nbsp; After researching via \u201cDr. Google\u201d, I did find a whole slew of great information on this Complexity Score.&nbsp; As a matter or fact, Dr. Damodaran actually built an Excel Spreadsheet for users to determine the discount that should be applied to the valuation.&nbsp; In his academic paper supporting the Model (\u201cThe Value of Transparency and the Cost of Complexity\u201d- Aswath Damodaran- January 2006), he first delineated what complexity means.&nbsp; In a more than likely \u201ctongue and cheek\u201d manner , he said the definition is &nbsp;\u201ccomplicated\u201d. Overall, a complex company would have three elements: a) regulatory issues, b) accounting issues, and c) corporate structural issues. Based on these three elements, he developed a litany of questions the valuator needs to consider and then a subsequent score would be inputted based on the model.&nbsp; Afterwards, an overall score is obtained where the discount for complexity percentage should be applied. Has it been used much? Probably not but it is something one should consider when valuing \u201ccomplex\u201d firms.<\/p>\n\n\n\n<p>Until next time\u2026\u2026\u2026\u2026\u2026.<\/p>\n\n\n\n<p>Joel<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hi everyone, Hope all is doing well.&nbsp; A very well-respected valuator asked me if I knew of Dr. Damodaran\u2019s Complexity Score discount model.&nbsp; I responded with an affirmative no but it definitely piqued my interest.&nbsp; After researching via \u201cDr. Google\u201d, I did find a whole slew of great information on this Complexity Score.&nbsp; As a [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"1080","footnotes":""},"categories":[2,3,1],"tags":[],"class_list":["post-26476","post","type-post","status-publish","format-standard","hentry","category-blog","category-joels-corner","category-uncategorized"],"acf":[],"aioseo_notices":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Complexity Score Discounting - CFIBV<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sandbox.myfuse.education\/cfibv\/2021\/09\/04\/complexity-score-discounting\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Complexity Score Discounting - CFIBV\" \/>\n<meta property=\"og:description\" content=\"Hi everyone, Hope all is doing well.&nbsp; A very well-respected valuator asked me if I knew of Dr. Damodaran\u2019s Complexity Score discount model.&nbsp; I responded with an affirmative no but it definitely piqued my interest.&nbsp; After researching via \u201cDr. Google\u201d, I did find a whole slew of great information on this Complexity Score.&nbsp; As a [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/sandbox.myfuse.education\/cfibv\/2021\/09\/04\/complexity-score-discounting\/\" \/>\n<meta property=\"og:site_name\" content=\"CFIBV\" \/>\n<meta property=\"article:published_time\" content=\"2021-09-04T17:46:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-10-13T11:47:53+00:00\" \/>\n<meta name=\"author\" content=\"Jemmal\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jemmal\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/sandbox.myfuse.education\/cfibv\/2021\/09\/04\/complexity-score-discounting\/\",\"url\":\"https:\/\/sandbox.myfuse.education\/cfibv\/2021\/09\/04\/complexity-score-discounting\/\",\"name\":\"Complexity Score Discounting - CFIBV\",\"isPartOf\":{\"@id\":\"https:\/\/sandbox.myfuse.education\/cfibv\/#website\"},\"datePublished\":\"2021-09-04T17:46:53+00:00\",\"dateModified\":\"2025-10-13T11:47:53+00:00\",\"author\":{\"@id\":\"https:\/\/sandbox.myfuse.education\/cfibv\/#\/schema\/person\/70a5befcec3b2fa7c79da8f4428ebcb6\"},\"breadcrumb\":{\"@id\":\"https:\/\/sandbox.myfuse.education\/cfibv\/2021\/09\/04\/complexity-score-discounting\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/sandbox.myfuse.education\/cfibv\/2021\/09\/04\/complexity-score-discounting\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/sandbox.myfuse.education\/cfibv\/2021\/09\/04\/complexity-score-discounting\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/sandbox.myfuse.education\/cfibv\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Complexity Score Discounting\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/sandbox.myfuse.education\/cfibv\/#website\",\"url\":\"https:\/\/sandbox.myfuse.education\/cfibv\/\",\"name\":\"CFIBV\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/sandbox.myfuse.education\/cfibv\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/sandbox.myfuse.education\/cfibv\/#\/schema\/person\/70a5befcec3b2fa7c79da8f4428ebcb6\",\"name\":\"Jemmal\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/sandbox.myfuse.education\/cfibv\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/ed36d4253e584194748dcd309a1a012b2a804125fe8c9ecdc5f62b7375ababc3?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/ed36d4253e584194748dcd309a1a012b2a804125fe8c9ecdc5f62b7375ababc3?s=96&d=mm&r=g\",\"caption\":\"Jemmal\"},\"sameAs\":[\"http:\/\/Jemmal\"],\"url\":\"https:\/\/sandbox.myfuse.education\/cfibv\/author\/jemmal\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Complexity Score Discounting - CFIBV","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/sandbox.myfuse.education\/cfibv\/2021\/09\/04\/complexity-score-discounting\/","og_locale":"en_US","og_type":"article","og_title":"Complexity Score Discounting - CFIBV","og_description":"Hi everyone, Hope all is doing well.&nbsp; A very well-respected valuator asked me if I knew of Dr. Damodaran\u2019s Complexity Score discount model.&nbsp; I responded with an affirmative no but it definitely piqued my interest.&nbsp; After researching via \u201cDr. Google\u201d, I did find a whole slew of great information on this Complexity Score.&nbsp; As a [&hellip;]","og_url":"https:\/\/sandbox.myfuse.education\/cfibv\/2021\/09\/04\/complexity-score-discounting\/","og_site_name":"CFIBV","article_published_time":"2021-09-04T17:46:53+00:00","article_modified_time":"2025-10-13T11:47:53+00:00","author":"Jemmal","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Jemmal","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/sandbox.myfuse.education\/cfibv\/2021\/09\/04\/complexity-score-discounting\/","url":"https:\/\/sandbox.myfuse.education\/cfibv\/2021\/09\/04\/complexity-score-discounting\/","name":"Complexity Score Discounting - CFIBV","isPartOf":{"@id":"https:\/\/sandbox.myfuse.education\/cfibv\/#website"},"datePublished":"2021-09-04T17:46:53+00:00","dateModified":"2025-10-13T11:47:53+00:00","author":{"@id":"https:\/\/sandbox.myfuse.education\/cfibv\/#\/schema\/person\/70a5befcec3b2fa7c79da8f4428ebcb6"},"breadcrumb":{"@id":"https:\/\/sandbox.myfuse.education\/cfibv\/2021\/09\/04\/complexity-score-discounting\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/sandbox.myfuse.education\/cfibv\/2021\/09\/04\/complexity-score-discounting\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/sandbox.myfuse.education\/cfibv\/2021\/09\/04\/complexity-score-discounting\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/sandbox.myfuse.education\/cfibv\/"},{"@type":"ListItem","position":2,"name":"Complexity Score Discounting"}]},{"@type":"WebSite","@id":"https:\/\/sandbox.myfuse.education\/cfibv\/#website","url":"https:\/\/sandbox.myfuse.education\/cfibv\/","name":"CFIBV","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/sandbox.myfuse.education\/cfibv\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/sandbox.myfuse.education\/cfibv\/#\/schema\/person\/70a5befcec3b2fa7c79da8f4428ebcb6","name":"Jemmal","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/sandbox.myfuse.education\/cfibv\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/ed36d4253e584194748dcd309a1a012b2a804125fe8c9ecdc5f62b7375ababc3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/ed36d4253e584194748dcd309a1a012b2a804125fe8c9ecdc5f62b7375ababc3?s=96&d=mm&r=g","caption":"Jemmal"},"sameAs":["http:\/\/Jemmal"],"url":"https:\/\/sandbox.myfuse.education\/cfibv\/author\/jemmal\/"}]}},"_links":{"self":[{"href":"https:\/\/sandbox.myfuse.education\/cfibv\/wp-json\/wp\/v2\/posts\/26476","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sandbox.myfuse.education\/cfibv\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sandbox.myfuse.education\/cfibv\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sandbox.myfuse.education\/cfibv\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/sandbox.myfuse.education\/cfibv\/wp-json\/wp\/v2\/comments?post=26476"}],"version-history":[{"count":1,"href":"https:\/\/sandbox.myfuse.education\/cfibv\/wp-json\/wp\/v2\/posts\/26476\/revisions"}],"predecessor-version":[{"id":28767,"href":"https:\/\/sandbox.myfuse.education\/cfibv\/wp-json\/wp\/v2\/posts\/26476\/revisions\/28767"}],"wp:attachment":[{"href":"https:\/\/sandbox.myfuse.education\/cfibv\/wp-json\/wp\/v2\/media?parent=26476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sandbox.myfuse.education\/cfibv\/wp-json\/wp\/v2\/categories?post=26476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sandbox.myfuse.education\/cfibv\/wp-json\/wp\/v2\/tags?post=26476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}