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The value identified applying this method might not be when compared with belongings or company truly worth of other companies as the companies may have various accounting insurance policies Regardless of functioning in precisely the same sector.

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The value based on utilizing this process might not be dependable as this technique employs the corporation’s fiscal details i.e. Earnings before interest tax depreciation and Amortization (EBITDA), which could be manipulated with the organization for showing a optimistic general performance of its organization.