Explain the intuition behind each of the following valuation techniques: (a) relative valuation (b) the VC Method

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Explain the intuition behind each of the following valuation techniques:

(a) relative valuation

(b) the VC Method

(c) the First Chicago Method.

Describe the strengths and weaknesses of each approach and the caveats regarding its implementation.

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Entrepreneurial Finance Strategy, Valuation, And Deal Structure

ISBN: 9780804770910

1st Edition

Authors: Janet Smith, Richard Smith, Richard Bliss

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Question Posted: Apr 26, 2024 06:02 AM

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Explain the intuition behind each of the following valuation techniques: (a) relative valuation (b) the VC Method

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Step by Step Answer:

a Relative Valuation Intuition Relative valuation involves valuing an asset by comparing it to similar assets in the market This is typically done by looking at multiples such as pricetoearnings PE pr...View the full answer

Entrepreneurial Finance Strategy, Valuation, And Deal Structure

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