Talk:Valuation using multiples

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This statement "One company, PM Software, has substantially better PER then the other ones" is flawed. It has the lowest PE ratio, that is it is the cheapest share and most would therefore say the worst PE ratio (only a buyer would regard it as the best). It is therefore inconsistent with the subsequent positive spin of government contracts seeking to argue up the value.

I agree it should be discarded, but because it is too cheap by reference to its peers, not too expensive!

CharlieO

[edit] Math

The math is at least unclear and/or approximative, at most wrong. Can someone change it into a latex formula? Can all values be defined? Lachambre 13:01, 20 November 2006 (UTC)

[edit] Equity valuation - last one in article

The last equity valuation in the article looks flawed to me:

"Calculate the current value of the future company value by multiplying the future business value with the discount factor. This is known as the time value of money.

Example:

VirusControl multiplies their future company value with the discount factor:

45.800.000 * (1-0.2) = 36,640,000 The company or equity value of VirusControl : € 36,640,000 million"

The discount factor in the immediate prior paragraph was .116, which would have resulted in a value closer to 5.3M. Perhaps these paragraphs are not related but they would make more sense if they were.

69.12.177.26 02:03, 13 February 2007 (UTC)Alan C.

Yes I agree. It doesn't seem to follow, and it should. Also the value used in the discount section of the article is 45.8 million, whereas the undiscounteed price was previously calculated as 44.3 million. (Gstrauss (talk) 06:18, 3 April 2008 (UTC))