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adelgalal

  • 4 years ago

hello, Do any one have reasonable approach for valuing high growth companies??

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  1. cococnutshake
    • 4 years ago
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    By measuring increases in productivity?(output) By measuring increases in market share? By product portfolio analysis? e.g. cash cows, stars etc.. By measuring annual profit turnover? I think you could do it that way?... :)

  2. adelgalal
    • 4 years ago
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    Ummm i think I have to use three-stage FCFF. The first stage innclude explicit forcast for the FCFF and I can Adjust the terminal value to reflect the treansition stage and then the stable stage...what is your openion?

  3. cococnutshake
    • 4 years ago
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    This is very advanced for my level, sorry I cannot help then :(

  4. Fsbatista1
    • 4 years ago
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    a three stage FCFF should do the job..just make sure you compare your high growth company data do the average of its sector so you can set the stages...for example:try estimating the first stage of your company's growth so it capital structure matches the sector average..

  5. Aswath
    • 4 years ago
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    Try the paper I have on valuing high growth companies under research/papers.

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