Tureves S.A. is a French biotechnology company that has developed promising therapies for hair loss, obesity, and wrinkled skin
Sales have doubled in each of the last three years, but so far, the company has yet to turn a profit. Which common procedures would be most, and least appropriate to value Tureves' ADRs.
What will be an ideal response?
Answer: Such a speculative company would be extremely difficult to value, but the price-to-sales ratio would be the best method, and the price-to-cash-flow ratio might be of some help. Since there are no dividends or earnings, dividend valuation and price-to-earnings methods would not be helpful.
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