Question

What are the methods of valuation of target firms? Explain?

Answer 1

The Use of Valuation Methods. The two most widely used valuation methods are the P/E ratio and the FCF to the firm model. In contrast, few analysts used economic value analysis, multiples based on book values (whether price or enterprise value multiples), or the P/Sales ratio.

Answer 2

The Use of Valuation Methods. The two most widely used valuation methods are the P/E ratio and the FCF to the firm model. In contrast, few analysts used economic value analysis, multiples based on book values (whether price or enterprise value multiples), or the P/Sales ratio.