Valuation is most difficult for mature and declining firms than for start-ups

Question

Quizplus · Accepted Answer

Valuation is generally considered more difficult for start-ups than for mature and declining firms because start-ups often lack a track record of financial performance, making it harder to predict future cash flows and assess risk. Mature firms typically have more historical financial data available, facilitating a more straightforward valuation process.

Valuation Is Most Difficult for Mature and Declining Firms Than