sounds like a strange thing to do whatever you look at in relative valuation you really pricing and US the analogy office when you go to buy a house or an apartment how the real to put a number on the house or apartment think about how to reattach number to your house was here How to find best home valuation company she’d look at other houses transactions that have happened the last few months and say you have an extra bedroom a bigger back yard air for your house is what , he or she is pricing your house.

I’ve never seen a real to sit down to a discounted cash flow valuation of the house and say you know what their house is worth five .% caustic Apple doesn’t work right its pricing at least workers are honest about what they doing this its pricing don’t confuse me with what I don’t know I don’t care you want to buy this house you gotta pay the price relative valuation is that there is a simple concept extended to business but you can see how much more message becomes a new under priced company rather than price house.

Right to price the company what do I need to find when you did the net flux case you are doing an intrinsic valuation when we did the Disney theme park you doing an intrinsic valuation with its not a valuation its capital budgeting project capital budgeting project just a mini valuation-it keeps things under control much of what we’ve said so far in the context of capital budgeting becomes part of situation an intrinsic valuation you value analysis based on its fundamentals its cash flows its growth its risk.