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From a forthcoming publication (“Estimating the Private Value of Financial Statement Statistics”), we know that an institutional investor would be willing to pay $170,515 for the future value of Return Of Equity (ROE) of the median firm from the COMPUSTAT database, and even $193,007 for small firms. Other estimates can be found in the paper for various ratios such as Operating Profit Margin, Operating Asset Turnover, Leverage, and Sales Growth.

However, the owner of said information won’t be motivated to offer if it gets stolen in the process or if it can only be offered to only one party. Only with the Secure Spreadsheet, it’s possible to offer it to multiple parties with cryptographic guarantees and without eroding the secrecy of the information as described in our paper “The Valuation of Secrecy and the Privacy Multiplier

On one side, the offeror specifies the value of the statistic from a future financial statement:

On the other side, the offeree inputs minimal and cutoff private values for the financial ratio:

Together, they securely compute on the private ratio to determine if it would be better not to act given the private information.

DISCLAIMER

The preceding is just a simplified example for illustrative purposes. In the real world, you will have to change the concrete parameters and use more complex formulas.

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