Recommends that the following factors be used as a guideline in all valuations of closely held businesses:
The nature of the business and the history of the enterprise and the history of the enterprise from its inception.
The economic outlook in general and the condition and outlook of the industry in particular.
The book value of the stock and the financial condition and outlook of the industry in particular.
The earning capacity of the business.
The dividend-paying capacity of the business.
Whether or not the enterprise has goodwill or other intangible value.
Sales of the stock and the size of the block of stock to be valued.
The market price of stocks of corporations engaged in the same or a similar line business having their stocks traded in a free and open market, either on an exchange or over the counter.
IRS Ruling
inception. 
