Question: We utilized revenue multiples in our SOTP valuation analysis because: a) Revenue multiples are the most effective at valuing technology companies b) Earnings multiples are
We utilized revenue multiples in our SOTP valuation analysis because:
a) Revenue multiples are the most effective at valuing technology companies
b) Earnings multiples are not available on the comparable company set, given most of the businesses are break even
c) We are only valuing the segment`s ability to generate revenue
d) Amazon's segmented disclosure does not report earnings on a necessary level of detail.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
