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Forums › Ask CIMA Tutor Forums › Ask CIMA F3 Tutor Forums › Valuation methods
Hi, what’s the best valuation method to value an unlisted company if it is doing better (profit and growth wise) than similar listed companies in an industry?
Hi,
You could use a free cash flow valuation, or P/E valuation but adjusting the P/E ratio of the listed entity for the expected level of growth.
There is no best method however, the ultimate valuation comes from an agreement between the seller and the buyer.
Thanks
Thanks that’s reaaly helpful