In the absence of earnings, other factors that drive the creation of value for a firm may be used for valuation purposes.

Name: In the absence of earnings, other factors that drive the creation of value for a firm may be used for valuation purposes.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Other factors such as assets, growth potential, market share, brand value, intellectual property, and strategic partnerships can be used in valuation models to determine the value of a firm even if it has no earnings or profits.

In the Absence of Earnings, Other Factors That Drive the Creation