DCF asks what your future cash is worth. Comparables ask what the market pays for businesses like yours. DCF is precise but built on assumptions; comparables are grounded but never truly comparable. Use both, trust the overlap.
DCF lies through assumptions. Nudge growth from 5% to 8% and shave two points off the discount rate, and the value can double. That is why a serious model shows sensitivity: what happens to the number when each assumption moves.
Comparables lie through the sample. A listed Thai company is liquid, audited and diversified. Your private business in Laos is none of those. Applying its multiple without a heavy discount flatters your value and fools nobody who matters.
Illustrative. Assumptions move value more than arithmetic does. Demand the sensitivity table.
We build the DCF first, from your real numbers. Then we pull regional comparables, discount them honestly, and lay the two ranges side by side. Where they overlap is the defensible range; where they diverge tells us which assumption to interrogate. You receive both in the Excel model, with the full logic open.
No single method. DCF captures your specific future; comparables anchor it to reality. A serious valuation runs both and trusts the overlap.
Higher than in developed markets. Country risk, currency risk and small-company risk stack on top of base rates, which lowers value compared to the same business elsewhere.
Because assumptions differ. Growth, margins and the discount rate drive the number. Always ask to see the assumptions, not just the result.
Full Excel model + PPT report. Free scoping call, then a fixed quote.
Message us