Company 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 due to the economic downturn. David believes that new government legislation will bring a welcome boost to the housing market.
What of the following valuation methods is most suitable for valuing company A? a. P/e ratio earnings b. DVM c. Market capitalization d. NRV
ans. NRV
Sir please explain to me why NRV is the appropriate answer. Thanks.