Opinion ID: 1129291
Heading Depth: 1
Heading Rank: 3

Heading: The Market (Comparable Sales) Approach to Valuation

Text: The parties do not dispute the values under this approach. The parties agree that, strictly speaking, it is not possible to value United by using comparable sales, because large integrated public utilities like United rarely are sold. However, United's expert appraiser, Dr. John H. Davis, III, offered a substitute technique, the stock and debt approach. [3] We need not set out in detail Davis' reasoning or his calculations under this theory. The Tax Court accepted them, as do we, and the Department in this Court does not dispute Davis' results. Those results were: 1983 [4] 1984 Stock and debt valuation $94,594,000 $98,692,000 We next examine the evidence relating to the income (capitalized income) approach.