▁is ▁worth ▁now . ▁But ▁if ▁each ▁person ▁has ▁a ▁different ▁opinion ▁on ▁how ▁things ▁will ▁turn ▁out , ▁you ▁could ▁expect ▁a ▁range ▁of ▁incons istent ▁estimates ▁of ▁the ▁worth ▁of ▁the ▁company . ▁With ▁this ▁range ▁of ▁approaches , ▁it ▁is ▁very ▁difficult ▁to ▁compare ▁E V ▁calculations ▁between ▁companies . ▁ ▁The ▁C FO ▁Forum ▁was ▁formed ▁to ▁consider ▁general ▁issues ▁relevant ▁to ▁meas uring ▁the ▁value ▁of ▁ins urance ▁companies . ▁The ▁E EV ▁was ▁the ▁output ▁of ▁this ▁forum , ▁and ▁allows ▁greater ▁consist ency ▁in ▁the ▁such ▁calculations , ▁making ▁them ▁more ▁useful . ▁ ▁Types ▁E EV ▁can ▁be ▁" real ▁world " ▁or ▁" market ▁consistent ". ▁The ▁former ▁takes ▁the ▁best ▁estimate ▁for ▁parameters ▁that ▁are ▁available , ▁whereas ▁the ▁latter ▁uses ▁a ▁slightly ▁const rained ▁set ▁of ▁parameters ▁which ▁are ▁close ▁to ▁best ▁estimate , ▁but ▁which ▁produce ▁results ▁which ▁match ▁market - related ▁h edge ▁costs . ▁ ▁Real - world ▁E EV ▁usually ▁uses ▁a ▁risk ▁disc ount ▁rate ▁made ▁up ▁of ▁the ▁risk - free ▁rate ▁plus ▁a ▁risk ▁margin ▁which ▁reflect s ▁the ▁weight ed ▁average ▁cost ▁of ▁capital ▁and ▁B eta ▁from ▁the ▁C AP M ▁model . ▁Using ▁company - level ▁economic ▁models ▁clearly ▁reflect s ▁a ▁top - down ▁approach ▁to ▁determ ining ▁the ▁risk ▁disc ount ▁rate . ▁ ▁Market - cons istent ▁E EV ▁makes ▁use ▁of ▁a ▁bottom - up ▁approach ▁for ▁determ ining ▁the ▁risk ▁disc ount ▁rate , ▁which ▁produces ▁a