Question
1) Explain how the process of valuing a high-growth company differs from valuing an established company. 2) How does the total market for a new
1) Explain how the process of valuing a high-growth company differs from valuing an established company.
2) How does the total market for a new product differ from a company's addressable market? Which market is more relevant for forecasting a company's revenue?
3) For a company with a new product, how can you estimate its potential market share?
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Step: 1
Answer 1 Valuing a highgrowth company differs from valuing an established company primarily due to the uncertainty surrounding future cash flows and growth prospects Highgrowth companies typically hav...
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
