Daniels is a fund manager within Investio Inc, a global investment company. He has recently identified the following potential acquisition targets:

Company A: A is an unquoted, property development company with a portfolio of over two hundred houses at various stages of renovation. It has been loss making for the last two years dues to the economic downturn. Daniels believes that new government legislation will bring a welcome boost to the housing market.

Which of the following valuation methods is most suitable for valuing Company A?

Select one:

a. P/E ratio x earnings

b. Dividend valuation model (DVM)

c. Net realisable value of assets

d. Market capitalisation