How do you value firms with negative earnings or zero sales (e.g. internet or biotech...

50.1K

Verified Solution

Question

Finance

How do you value firms with negative earnings or zero sales (e.g. internet or biotech startup firms)? Do you prefer Comps or NPVs? Which one is easier? Which one is better? Discuss the pros and cons of these two approaches to valuation.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students