Big4WallStreet Finance Blog — growth
Valuation Pitfalls
discount rates growth pitfall valuation
The difficulty of a valuation does not focus on how to find and apply any of the chosen methods, but rather on the ability to predict the future. In practice what is valued is the business model, the company strategy, the attraction of its products, its prospects and its risks.
Below we outline a series of pitfalls common among analysts and investors related to the valuation of a company.