Which method should we use to valuate young companies, Financial Management

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Which method should we use to valuate young companies with high growth but uncertain futures? Two examples were Boston Chicken and Telepizza when they began.

The great majority of analysts admit that it is very complex to realize projections of flows of young companies with uncertain futures. But Fernández shows that we can predict a future year in which the company would already be consolidated; that is, starting from that particular year the company should have a moderate growth.

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