How Changes in the Market and Interest Rates Affected Company Valuations

Many ESOP companies and their employee-owners witnessed a significant decline in the valuations of their company stock, per their December 31, 2022, year-end appraisals (as compared to the December 31, 2021, appraisals), even if they had a good year. This is due to the fact that valuation is based on what a willing buyer would pay a willing seller