CONCLUSION
This chapter discusses various valuation tools and methods and the circumstances under which they are used. It is important for an analyst to understand these concepts. It is also important to recognize that, ultimately, the quality of any value estimate depends on how well the analyst understands the firm and its competitive position, its operating strategy, and what could happen in the future. Those expectations about the future drive the cash flow forecasts and ultimately determine how well the analyst estimates the value of the business. In essence, the quality of any value estimate depends on the quality of the information that is available and how well that information is used.
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