Business Valuation Input Level 3 refers to the situation where, due to lack of information, the business valuation analyst relies on a firm’s forecasts to estimate the fair market value, part thereof or the value of an equity stake. Reliance on Business Valuation Input Level 3 arises when market information (Business Valuation Input Level 1) and internal cost information (Business Valuation Input Level 2) are not unobservable requiring major adaptations such as the development of projected cash flows for the business entity from which the fair market value can be deduced. Under such instances, business valuation analysts rely on the past financial records to determine the future performance of the business entity from which the fair market value can be determined.