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The value based on utilizing this technique may not be dependable as this process makes use of the organization’s fiscal data i.e. Earnings ahead of curiosity tax depreciation and Amortization (EBITDA), which might be manipulated via the organization for demonstrating a stanford case study analysis optimistic performance of its small business.
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This valuation tactic isn't going to include subjective forecasts or assumptions thus, the outcomes or price based on the solution seems to be correct compared to other valuation techniques that entail substantial diploma of subjectivity.
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