Along with the DCF method, the market comparison method is the most widely applied method by independent valuers and appraisers in the context of takeover bids, but also generally in any valuation.
This note is based on this observation and successively deals in depth with :
– The regulations governing the application of this method
– The scope and limitations of this method
– Choice of sample and analysis of comparables
– Choice of multiples and application of discounts
– Implementation of this method