Valuation: Comps & Precedents
One of your best 'comps' is a diversified company that gets only about 40% of its revenue from your target's business. How do you handle it?
Model answer
Recognize the pitfall: its trading multiple blends segments with different growth, margins, and risk, so it is not a clean read on your target's business. Options: (1) exclude it if you have enough…
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