Discuss appropriate methodology for valuing an oil mine

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Discuss an appropriate methodology for valuing an oil mine or an innovative technology Research and development? Why will you use this method? Why not other methods? Can you give some more examples of situations where this method can be used?

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Thought there are many methods to value an oil mine yet the most suitable method is downstream valuation method. This method involve calculation of discounted cash flow, Earning Before Interest Taxes and Amortizations multiples etc. this method is useful because lower oil prices negatively affect valuation of E and P companies and this method benefits lower prices of oil to the refiners.

Reference no: EM131909973

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