Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Besides financial firms, there are some special theoretical problems with
valuing utilities, and commodity related firms whose pricing and profits
are a direct function of a commodity price. (i.e., no problem with
oilfield service companies or maybe even refiners, but a problem with pure oil firms or mines).

A lot of otherwise good valuation methods will work better steering clear of those too.
It's a lot easier to value "ordinary" product and service companies,
and if you're using a single method to do comparisons, it might work
best to do it only in this universe.

Just a thought.

Jim
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.