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Glossary
Damages and Valuation
Valuation Methods terms within damages and valuation.
damages-and-valuation
The before-and-after method measures lost profits by comparing performance before and after the conduct at issue.
Cost projection methodology is the approach used to estimate future expenses across the relevant time period.
The discount rate converts future losses to present value, and small changes produce large differences in the total.
Future damages compensate for losses expected to occur after trial, reduced to present value.
The growth rate assumption projects how costs or earnings will increase over the damages period.
A life care plan is an expert projection of an injured person's future medical and support needs, itemized by service, frequency, duration, and cost.
Life expectancy tables provide statistical estimates of remaining lifespan, used to project future damages periods.
Lost profits analysis quantifies revenue a business would have earned absent the defendant's conduct.
Mitigation of damages is the principle that a plaintiff must take reasonable steps to limit their losses and cannot recover for harm that reasonable...
The net accumulations method measures wrongful death economic loss as what the decedent would have saved rather than earned.
Present value is the current worth of future damages after applying a discount rate, reflecting that a dollar received today is worth more than one...
Work-life expectancy estimates the remaining years a person would have worked, used to project lost earnings.
The yardstick method estimates lost profits by comparing the plaintiff to similar unaffected businesses.
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