Valutico
SEPTEMBER 13, 2023
SMEs can present challenges with DCF due to limited historical financial data, unreliable information, inadequate financial forecasts, and difficulty in determining terminal value. Lastly, determining the continuity value (or terminal value) is a subjective process that often leads to disagreements.
Valutico
AUGUST 10, 2023
Lastly, determining the continuity value (or terminal value) is a subjective process that often leads to disagreements. 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.
Valutico
MAY 6, 2024
Analysts use financial metrics and multiples such as Price to Earnings (P/E), Price to Book (P/B), Enterprise Value to Sales (EV/Sales), Enterprise Value to EBITDA (EV/EBITDA), and Price to Book (P/B) ratios derived from trading data of similar public companies or deal pricing data of similar M&A transactions.
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