Mistakes Will Destroy Your Property Valuation

Firms borrowing decisions but here we’re not doing enough that all these firms might have a lot different leverage and just looking at this multiple isn’t going to necessarily tells anything now what we could do we could look at the enterprise value multiple or so instead of the p/e ratio and in that case now we’re factoring in firms borrowing and leverage decision so we might have to use a different type of multiple if there’s a lot of differences and leverage between the two firms and really important factor.

is as well as that it’s really difficult to look at two different firms and assume that they have the exact same risk just because they operate in a similar industry or that Adelaide Property Valuers so forth they might have very very different risk and we’re not taking that into consideration whether we use the Ev multiple or the price earnings multiple is really something difficult to control for and when we use this multiple evaluation we’re not really capturing any differences in risk so you might be wondering why is anybody use multiple valuation.

why are we using the e ratios or or EV multiples to value firms why are we doing any of this well one thing to notice it’s based on actual prices right so when we took when we took over here we look at humdrum industries we’re actually looking at their share price right we’re bench much bench marking and using an actual share price to come up with a share price for whiz-bang and matter of fact we don’t just have to use just one firm as the comp we could have comp to you could have come three depends how many firms we think are comparable and we could take the average right we could take the average p/ratio of firm & if we think they’re all comparable and then use that instead of so we’re using actual share prices right that the investors are paying and so forth for these.