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标题: Highest Valuation Method [打印本页]

作者: jim8z3    时间: 2013-8-12 16:45     标题: Highest Valuation Method

Does someone know why the comparables method gives a higher valuation for a company than DCF?
作者: bbtomato    时间: 2013-8-12 16:45

Everything is overvalued at the same time, maybe?
作者: Roflnadal    时间: 2013-8-12 16:45

Because the valuator is making an error in his DCF modeling.
作者: Analyze_This    时间: 2013-8-12 16:46

There could be a lot of reasons:
1.  Poor choice of public companies
2.  Poor choice of multiples
3. Overly conservative discount rate
4. Irrational exuberance in the market
How big a difference are you talking about?  Are you using forward multiples, or just historic multiples?
作者: justin88    时间: 2013-8-12 16:46

Thanks for the replies guys, I am using previous transactions. I guess the answer lies to higher premium being paid?
作者: cfalevel2011    时间: 2013-8-12 16:46

Let me get this straight… you’re asking a bunch of strangers, who don’t know what you’re valuing or what your inputs are, why your multiples approach gives you a higher value than a DCF. Ok. With that in mind, the answer is C. Next!
作者: comp_sci_kid    时间: 2013-8-12 16:46

Generally speaking, which method tends to give higher value? Is it comparables again?
作者: Houjichasan    时间: 2013-8-12 16:46

In theory, all absolute valuation methods will produce the same answer.  Comparables will give a higher value if the companies you are comparing to are “hot” or demand a higher price.  If they are depressed, then will give a lower price.




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