Issues faced when valuing a declining company
Andrew Stolz
MAY 8, 2020
This is a Valuation Master Class student essay by Lim Lee Bin from June 16, 2018. Lee Bin wrote this essay in Module 4 of the Valuation Master Class. Most valuation models are built for the healthy, on-going company. When used to value a declining company, analysts will face special challenges as the characteristics of a declining company will cause some of the valuation model’s assumptions to break down.
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