This was a challenge I came across when valuing a company, here are some of the things that I have learned and what helps me choose one or the other(s).
Points to consider:
-What industry is my firm in?
-Does it operate with a lot of HARD assets (machinery)?
-What effect will depreciation of X assets have on the firm's earnings and productive capability?
-Are the loans/interest payments temporary or does the firm constantly funds M&A and activities partly with loans and liabilities.
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