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

Assignment Help:

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.

Related Discussions:- Which method should we use to valuate young companies

Variance analysis, a) Write short note - 1) P V Ratio 2) Margi...

a) Write short note - 1) P V Ratio 2) Margin of Safety 3) Material Variances 4) Absorption Costing b) Describe the meaning of the term 'variance an

What is business combinations, Q. What is Business Combinations? Combin...

Q. What is Business Combinations? Combining of two entities. Under PURCHASE METHOD OFACCOUNTING, one entity is deemed to attain another and there is a new basis of accountingfo

Cost of capital.., your firm is considering its household products division...

your firm is considering its household products division. you identify John Lewis as a firm with comparable investments. suppose J.L. equity has a market capitalization of 150 bill

Futures contract, Futures Contract It is an obligation to purchase or s...

Futures Contract It is an obligation to purchase or sell an asset at an agreed-upon price on an exact future date. The buyer commits himself or herself to buy the asset, and th

Determine the factors of large organisations, Determine the factors of Larg...

Determine the factors of Large organisations - Greater efficiency and productivity achieves economies of scale - Easier to manage, organise and control workers through hie

Personal finance chapter 9 workbook 2nd edition, answers for the personal f...

answers for the personal finance literacy 2nd edition workbook answers chapter 9(obtaining and protecting your credit)

What are the drawbacks of the payback, The drawbacks of the payback approac...

The drawbacks of the payback approach are as follows - Payback ignores the overall profitability of a project by ignoring post payback cash flows. In the illustration above the

Random number generation, Random Number Generation Since we have said t...

Random Number Generation Since we have said that competitors' average price, quantity sold and cost behave in a random fashion but follow a normal distribution, if we want to d

Operating cycle, discuss the applicability of operating cycle to poultry bu...

discuss the applicability of operating cycle to poultry business(consider broilers)

Explain and compare the costs of hedging, Explain and compare the costs of ...

Explain and compare the costs of hedging via the forward contract and the options contract. Answer: There is no up-front cost of hedging through forward contracts. Though, in t

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages