Our Real-Time Billionaires List ranks the wealthiest individuals globally on a daily basis. To calculate their net worth, we employ a transparent methodology, ensuring accuracy and clarity in our assessments.
Data Sources and Updates
We utilize market data, economic indicators, and news reporting to gauge fluctuations in personal wealth. Net worth figures are updated daily after the close of trading in New York. Publicly traded company stakes are valued using the latest closing prices, converted to U.S. dollars at current exchange rates.
Valuation of Closely Held Companies
For closely held companies, we employ various valuation methods such as comparing enterprise value-to-Ebitda ratios of similar public companies or analyzing comparable transactions. The value of closely held companies is adjusted daily based on market movements of peer companies or relevant industry indices. When ownership of closely held assets cannot be verified, they are excluded from calculations.
Discounts and Adjustments
A standard liquidity discount of 5 percent is applied to most closely held companies to reflect potential difficulties in selling assets.
Country risk discounts may be applied based on asset concentration and ease of selling within a particular geography.
Hedge fund businesses are valued using market capitalization-to-assets under management ratios of comparable publicly traded funds.
Net worth calculations include dividend income, proceeds from share sales, and adjustments for collateralized shares or loans.