Double your dating revenue

Even if a company has been growing at 25% per year for the past several years, there is no way to be sure this growth rate will continue.

The management team may be confident that the growth rate will be even higher in the future—and may say so enthusiastically to potential acquirers.

My bookshelf has an entire section of books on valuation.

Even though I deal with valuation every day, I haven’t looked at any of those books for at least a couple of years.

In the past few years, Web 2.0 companies have been in high demand.

Companies like Yahoo, Google, Cisco and e Bay bid up the prices for these types of companies because they wanted to buy them faster than entrepreneurs could add to the supply.

However, the buyers will be skeptical - and one can’t blame them for being concerned that the growth rate might decline in the future.

This uncertainty in the future projections creates another type of discount factor on the valuation.In this case, the price earnings multiple, or P/E ratio, is about 9.Another significant, and difficult to quantify, factor in company valuation is predictability. 1, what is the accounting treatment for accrued revenue?2, How does Work-In-Progress applied to a law firm? for (1), if the services rendered is in year 1, but the bills only issued in year 2, so it means in year 1, Dr Accrued Revenue (BS)Cr Professional Fee Income (P&L) Then year 2, Dr Trade Debtor (BS)Cr Accrued Revenue (BS) Is it correct?But

This uncertainty in the future projections creates another type of discount factor on the valuation.In this case, the price earnings multiple, or P/E ratio, is about 9.Another significant, and difficult to quantify, factor in company valuation is predictability. 1, what is the accounting treatment for accrued revenue?2, How does Work-In-Progress applied to a law firm? for (1), if the services rendered is in year 1, but the bills only issued in year 2, so it means in year 1, Dr Accrued Revenue (BS)Cr Professional Fee Income (P&L) Then year 2, Dr Trade Debtor (BS)Cr Accrued Revenue (BS) Is it correct?But $1 million of income ten years from now is worth considerably less.

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This uncertainty in the future projections creates another type of discount factor on the valuation.

In this case, the price earnings multiple, or P/E ratio, is about 9.

Another significant, and difficult to quantify, factor in company valuation is predictability.

1, what is the accounting treatment for accrued revenue?

2, How does Work-In-Progress applied to a law firm? for (1), if the services rendered is in year 1, but the bills only issued in year 2, so it means in year 1, Dr Accrued Revenue (BS)Cr Professional Fee Income (P&L) Then year 2, Dr Trade Debtor (BS)Cr Accrued Revenue (BS) Is it correct?

But $1 million of income ten years from now is worth considerably less.

||

This uncertainty in the future projections creates another type of discount factor on the valuation.

In this case, the price earnings multiple, or P/E ratio, is about 9.

Another significant, and difficult to quantify, factor in company valuation is predictability.

1, what is the accounting treatment for accrued revenue?

million of income ten years from now is worth considerably less.

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