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The multiples utilised On this tactic could possibly be misinterpreted or incomparable resulting from variances in accounting procedures of various businesses.
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The worth determined by making use of this method might not be reliable as this process works by using the corporate’s money facts i.e. Earnings prior to curiosity tax depreciation and Amortization (EBITDA), which might be manipulated through the organization for showing a favourable overall performance of its business.
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