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How to value SMEs: A Simplified Roadmap

Valutico

However, market information required for CAPM, such as beta coefficients and risk premiums, may not be available for SMEs. A common method is to use the company’s Price-to-Earnings Ratio (PER), but it can be challenging for SMEs due to the absence of a market. The discount rate is another contentious area.

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How to Value an SME—An Introductory Guide

Valutico

However, market information required for CAPM, such as beta coefficients and risk premiums, may not be available for SMEs. A common method is to use the company’s Price-to-Earnings Ratio (PER), but it can be challenging for SMEs due to the absence of a market. The discount rate is another contentious area.