hello, Do any one have reasonable approach for valuing high growth companies??
Stacey Warren - Expert brainly.com
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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?... :)
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?
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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..
Try the paper I have on valuing high growth companies under research/papers.