What Are Some Implicit Assumptions That Are Made When Valuing

question 59

Essay

What are some implicit assumptions that are made when valuing a firm using multiples based on comparable firms?

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Definitions:

Bases for Division

The criteria or principles used to divide or classify information, objects, or individuals into distinct groups or categories.

Simple Present Tense

Simple present tense is a verb tense used to describe habits, universal truths, routines, and facts that are currently true or occur on a regular basis.

Intern

An intern is a person who works, sometimes without pay, at a trade or occupation in order to gain work experience.

Duties

Tasks or responsibilities that a person is obligated to perform.