Explain valuation method for pharmaceutical laboratory share
We were assigned a valuation of a pharmaceutical laboratory’ shares. Which valuation method is further convenient?
Expert
Basically, you must use the discount of expected flows. After doing this valuation you can compute some ratios and compare them with other companies by the sector to see when they make sense.
Could we suppose that, as we cannot predict the future evolution of the value of shares, a good estimation would be to consider this constant during the next five years?
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