"I shall be using three contemporary valuation methods for my analysis. The Multiple of Cash Flow Valuation; the Multiple of Revenues Valuation; AND last, but not least, the Discounted Cash Flow Valuation. By backtracking, i.e. plugging in the sales price (and BTW, thanks for the verification...I had not remembered that PR), we can determine what the approximate revenues were for the station."
You must have skipped a few days in math class. Typically, when trying to use math formulas to verify an unknown quatity (in this case the unknown is the fair market price - there is a hypothosis that the unknown value is $1.3 million as being the fair market price, but that is indeed the unknown value), the known values are put into an accepted formula, rather than beginning with the hypothosised unknown value and backtracking, as you say, to come up with....with what actually? "we can determine what the approximate revenues were for the station" - really?
I own a small business, and I don't know what it's worth. Your saying I can guess what it's worth, and use that figure to determine how much money I made?
Awesome, I'll try that.
Thanks.
