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Exxon Mobil Valuation Criteria

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A) Determine the valuation criteria and technique used to select the target company and explain the pros and cons for that selection.

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Exxon Mobil valuation criteria and technique is discussed very comprehensively in this explanation.

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A) Determine the valuation criteria and technique used to select the target company and explain the pros and cons for that selection.

There are some common valuation criteria that can be used to value Exxon Mobil; the first is the capitalized earnings and earning power of Exxon Mobil. The main pro of this method is that this method focuses on the potential income Exxon Mobil is expected to earn over a period of time. The con for the selection of this method is that with a change in the environment including international politics and oil prices, the income potential of Exxon Mobil is likely to change. The valuation using this criterion has two steps, the first is the to get a discounted cash flow by forecasting the ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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