17. The Octopus: Multibusiness Global Companies
If globalization has been a key theme of the last decade, it should come as no surprise that the companies that we are valuing reflect that globalization. This chapter focuses on a subset of companies that are diversified not only across countries, but also across businesses. These multibusiness firms, spread out geographically, are difficult to value because they represent multiple businesses, bundled and sold as a single package. This chapter examines these firms and considers the best ways to reflect the differences in risk, cash flow, and growth characteristics across the different businesses/regions that a company may operate in.
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