When Would A Liquidation Valuation Produce The Highest Value?

1.	When Would A Liquidation Valuation Produce The Highest Value?
Answer» This is HIGHLY unusual, but it COULD happen if a company had substantial hard assets but the market was severely undervaluing it for a specific reason (such as an earnings miss or cyclically). As a result, the company's COMPARABLE Companies and Precedent Transactions would likely produce lower values as well - and if its assets were valued highly enough, Liquidation VALUATION might give a higher value than other METHODOLOGIES. This is highly unusual, but it could happen if a company had substantial hard assets but the market was severely undervaluing it for a specific reason (such as an earnings miss or cyclically). As a result, the company's Comparable Companies and Precedent Transactions would likely produce lower values as well - and if its assets were valued highly enough, Liquidation Valuation might give a higher value than other methodologies.

Answer»

This is HIGHLY unusual, but it COULD happen if a company had substantial hard assets but the market was severely undervaluing it for a specific reason (such as an earnings miss or cyclically).

As a result, the company's COMPARABLE Companies and Precedent Transactions would likely produce lower values as well - and if its assets were valued highly enough, Liquidation VALUATION might give a higher value than other METHODOLOGIES.

This is highly unusual, but it could happen if a company had substantial hard assets but the market was severely undervaluing it for a specific reason (such as an earnings miss or cyclically).

As a result, the company's Comparable Companies and Precedent Transactions would likely produce lower values as well - and if its assets were valued highly enough, Liquidation Valuation might give a higher value than other methodologies.

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