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The worth based on utilizing this process may not be reliable as this process makes use of the corporate’s monetary information i.e. Earnings right before curiosity tax depreciation and Amortization (EBITDA), which might be manipulated via the Group for showing a constructive efficiency of its enterprise.

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The multiples utilised in this tactic could be misinterpreted or incomparable resulting from variances in accounting guidelines of different corporations.

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