hello, Do any one have reasonable approach for valuing high growth companies??

Question

anonymous · Answer

By measuring increases in productivity?(output)
By measuring increases in market share?
By product portfolio analysis? e.g. cash cows, stars etc..
By measuring annual profit turnover?
I think you could do it that way?... :)

anonymous · Answer

Ummm i think I have to use three-stage FCFF. The first stage innclude explicit forcast for the FCFF and I can Adjust the terminal value to reflect the treansition stage and then the stable stage...what is your openion?

anonymous · Answer

This is very advanced for my level, sorry I cannot help then :(

anonymous · Answer

a three stage FCFF should do the job..just make sure you compare your high growth company data do the average of its sector so you can set the stages...for example:try estimating the first stage of your company's growth so it capital structure matches the sector average..

anonymous · Answer

Try the paper I have on valuing high growth companies under research/papers.