The Third Method of Valuation

The ten cap analysis is a quick and easy way to figure out a decent price for the business. It does not require that i come up with this growth rate or this p e ratio, both of which are really speculative. So we don't have to worry about that part of it. We just have to get a relatively conservative growth rate that we could live with. And we can come up with a price where we'd get our money back out of free cashfull over a certain number of years. That's how we use em. All three of these valuation methods comeup with a price that i could pay to day, that's in the ball park, not each other.