Which method should we use to valuate young companies, Financial Management

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Which method should we use to valuate young companies with high growth but uncertain futures? Two examples were Boston Chicken and Telepizza when they began.

  • The great majority of analysts admit that it is very complex to realize projections of flows of young companies with uncertain futures. But Fernández shows that we can predict a future year in which the company would already be consolidated; that is, starting from that particular year the company should have a moderate growth.

 


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