What drives valuation?

Expert Knowledge BaseWhat drives valuation?
EA SupportEA Support Staff asked 4 years ago
1 Answers
David ButlerDavid Butler Staff answered 3 years ago

It is result of future projections of business performance that are both reliable and can be defended and is influenced by the competition among the potential acquirers.
Quantifiable synergies and tax advantages are important to the acquirer so if they are sizeable, the value is more important too.
There is a difference between the price and the value. Price is what you get, value is just the math.