Places To Look For A Melbourne Property Valuation

When the earnings per share negative you cannot compute P you lose those companies in your sample you might say big deal at the start of $MONTH out of US companies negative earnings that’s a lot of companies you’re losing your sample and indirectly or creating some bias in your sample right you’re losing the smallest risky is perhaps most trouble companies that’s no way to do a sampling analysis so ask those questions and try to get them answered because it’s easy to create bias and your assessments without even realizing you’re doing it third stop check to see what drives the multiple I’m going to give you a very simple way of doing this in a minute but you’re the two questions are trying to answer what are the variables that determine this multiple.

Priced priced about and you’re going to see that with discounted cash flow valuation you’re going to be able to answer that question relatively simple simply you’re going to be able to tell me the three or four variables that drive that multiple second you have to tell me as those variables change how will your multiple change so let’s take it as an example p regions intuitively we know that higher growth.

companies have higher p wretches and lower growth companies right butler’s ask a more specific question if your growth increases % how much will you p go up if you are unable to answer that question you’re gonna have trouble with multiples so we have to be able to scale are multiples to the variables were talking about so let me give you the little trick that I could that that you can use to see what variables driver multiple let’s assume I came to you within.

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