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The multiples applied Within this method might be misinterpreted or incomparable resulting from differences in accounting insurance policies of various organizations.

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e. CAGR (compound average progress return). A money Trader is definitely keen on the net return attained yr immediately after 12 months, Consequently usage of geometric is a lot more acceptable. Hence we would use geometric typical for threat no cost level and threat quality for every of your a few divisions, as supplied in show five of the case.

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