International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

The Link between Anti-Trust and Finance: A Suggestion for Relative Valuation
Dr. İhsan Kulali, Dr. Hakan Bilir

The two most common valuation methodologies include Discounted Cash Flows, and Relative Valuation. In relative valuation, the objective is to value as sets, based upon current market pricing of similar assets. The starting point of relative valuation is to select similar firms in which to value the firm in question agents. At the relative valuation traditional approach (RVTA), analyst tries to look at similar sectors, products, geography, firm size, technology and customer behaviour. The idea is to gather as many identical firms as possible. Although it is commonly used and easy to apply, there are many criticism of the RVTA. We think that the anti-trust market definition analysis can be used as a complement any tool for the relative valuation method. RVTA uses some concepts such as similar sector, product, geography, firm size, technology, customer behavior and the anti-trust market definition analysis take care this concept in a different manner.

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