guptaminu21
New member
Errors in valuation of a High Tech Co:
Cost Approach - This approach is based on the logic that the fair market value can be no more than the cost of acquiring a substitute with same features and functionalities. It values a company based on the estimation of costs incurred / investment required to replace the future earning ability of the firm (and its assets).
Cost Approach - This approach is based on the logic that the fair market value can be no more than the cost of acquiring a substitute with same features and functionalities. It values a company based on the estimation of costs incurred / investment required to replace the future earning ability of the firm (and its assets).