Valuing Loss Making Firm

Question 1

Market Methods Used to Value Private Companies (3)

Answer 1

GPCM - Guideline public company method
GTM - guideline transactions method
PTM - prior transaction method

Question 2

GPC Method

Answer 2

Valuation based on multiples of similar public companies, adjusts to reflect risk and growth prospects of subject, controlling premium (%) added to reflect power of control when valuing controlling interest