Five profit-based valuation models are estimated from a recent group o
f announced cable system sales. The regression-based models identify d
eterminants of cable systems' economic value, provide elasticities, an
d explain over 99% of the variation in value for a sample that reflect
s the industry trend of consolidation. System appraisers can use both
the model coefficients as well as the method to obtain baseline averag
e levels of economic value from which transaction premiums or discount
s can then be considered.