Question

In: Finance

What's the best valuation method(s) for Apple, General Motors and Amazon?

What's the best valuation method(s) for Apple, General Motors and Amazon?

Solutions

Expert Solution

Best valuation methods for Apple, General motors and Amazon are always different.

when it will be coming to the valuation of the Apple, the high cash reserves of the company, and the high investment which have been made by the Apple should always be taken into consideration and I will choose free cash flows to the firm, and I will be choosing the enterprise value to EBITDA valuation for Apple.

When it will be coming to valuation of Amazon, I would be looking for PEG ratio, because this company is excessively valued and this company has discounted the future earnings as well, so I would be looking for price to earning growth for this company in order to find out the actual investible range.

When it comes to the General motors, since the company is not able to make regular profits, I would be looking for cash flow related valuations and I would be looking for enterprise value for the valuation for this company as well because this company in it's maturity stage of the life cycle and there are not much scope for advancement in the share price.

So these are the valuation method, I'll adopt for different companies.


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