RS Revenue Ruling 59-60 emphasizes that an appraiser must consider a company's earning and dividend-paying capacity. The income method values a company by capitalizing past profits or discounting future cash flows based on the cost of capital, which is heavily influenced by interest rates. Higher interest rates increase key components of the cost of capital, such as the risk-free rate... https://www.managecfo.com/news/the-market-s-role-in-determining-the-value-of-your-privately-held-business-nwid-301.html