Considered the truest estimate descriptor relates to the market-based method for valuing a corporation.
The market strategy as a valuation method is used to locate the cost of a business with the aid of evaluating it to different comparable companies that have offered recently.
The two often used market approach methods are the Public Company Comparables and Precedent Transactions.
The market approach is a technique of finding out the cost of an asset based on the selling rate of comparable assets. It is one of three popular valuation methods, along with the cost approach and discounted cash-flow evaluation (DCF).
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