Question: Newco is a young company that has yet to make
Newco is a young company that has yet to make a profit. You are trying to place a value on the stock, but it pays no dividends and you obviously cannot calculate a P/E ratio. As a result, you decide to look at other stocks in the same industry as Newco to see if you can find a way to value this company. You find the following information:
Estimate a market value for Newco. Discuss how your estimate could change if Newco was expected to grow much faster than the other companies.
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