P. 1
pvt8

pvt8

|Views: 68|Likes:
Published by gagan585

More info:

Published by: gagan585 on Aug 07, 2008
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

10/15/2012

pdf

text

original

nCollect a group of publicly traded comparable firms, preferably in the
same line of business, but more generally, affected by the same
economic forces that affect the firm being valued.

• A Simple Test: To see if the group of comparable firms is truly
comparable, estimate a correlation between the revenues or operating
income of the comparable firms and the firm being valued. If it is high
(and positive), of course, your have comparable firms.

nIf the private firm operates in more than one business line collect
comparable firms for each business line

Aswath Damodaran

183

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->