Within this level, fair value is also estimated using a valuation technique.

Given how fast the companies are growing, "you can't let historical valuation techniques guide you," he said.

These are the two main tables disclosed, but additional information is required such as description of the valuation techniques, significant transfers between levels, etc.

The following are some of the principal valuation techniques used in practice to evaluate option contracts.

And for any valuation technique, it's important to look at a range of forecast values.

This valuation technique has really become popular over the past decade or so.

This valuation technique measures how much money the company makes each year per dollar of invested capital.

Therefore, he says, the commercial and savings banks should not be forced to use the same kind of valuation techniques.

A simplified version of this valuation technique is the binomial options model.

My new book examines the modern valuation techniques that deal with such changing circumstances.