The Badger Method is one of the methods for valuing closely held businesses or interest in such businesses under the income approach. Under this method, the business valuator is required to make a judgment call on how risky the business being valued is and apply parameters based on the valuator’s assessment and judgement of the risk. The Badger method is a multiplier derived from the magnitude of risk assigned by the business valuator to the business being valued. The risk may be classified as Low Risk, Medium Risk, High Risk, and Very High Risk. The corresponding multiple which go with the risk classification are Low Risk (8.33-6.7), Medium Risk (6.7-5), High Risk (5-4), and Very High Risk (4 or lower). The multiple is multiplied by forecast cash flow to arrive at the fair market value of the business or the interest being valued.