A young, capital intensive company has a large amount of tangible assets.

A young, capital intensive company has a large amount of tangible assets.

Intangibles, including brand name, are considered to be of negligible value at this time

Relevant data:

• The company operates a residual dividend policy.

• The industry in which the company operates is suffering from a large amount of uncertainty at present. Forecasting the future earnings or cashflows of the company is therefore extremely difficult

• There are very few quoted companies in the industry that are similar in size or in precisely the same business sectors.

Which method of valuation would be most suitable for this company?