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Valuation analysis
Environmental & entity analysis

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* During the technical analysis of the subject company, the valuation analyst will often perform a trend analysis. What is the purpose of a trend analysis?

To identify if there are any companies that can be used in the market approach when considering the acquired company method, such as use of Mergerstat.

To compare the subject company’s performance over the past several years to identify the positive and negative trends affecting the company.

To develop measures based on prices at which stocks of similar companies are trading in a public market.

To establish that the current year’s earnings is a proper proxy for the expected future earnings.

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Valuation analysis Environmental & entity analysis

Valuation analysis Environmental & entity analysis

Check your knowledge on this topic

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Valuation analysis
Environmental & entity analysis

Valuation analysis
Environmental & entity analysis