Dealing with Distress in Valuation

1. Introduction
This article is about the techniques and ways for Traditional valuation, which mentioned as DCF and relative as the ways of doing traditional valuation. It has been claimed in the article that, the companies will ignore the distress entirely and make only assumptions that are sometimes not real about the current situation of the company itself which is not be able to meet the financial responsibilities. It also has been stated that by looking at the effect of distress on relative valuation and techniques of incorporation its effect into relative value

2. Research methodology
The research method used for this article was through survey which was done by the means of interview and also some research based on previous studies in relation to this topic. A test has been done for the survey samples which have been received from the answerers in order to verify them whether they are true or not.

3. Variables
Independent
The independent variable in this article is the one which is manipulated by the researcher of this

article to deal with Distress in Valuation. Dependent

Here the dependent variables can be benefits that transfer pricing brings for the manufacturing firms as well as the wise view of operation units on why and how to deal with Distress in Valuation for their manufacturing firms.

4. Major findings
There are some major findings in this research that the main two are listed as below: 1. 2. 3. 4. . We value only large, publicly traded firms and distress is very unlikely for these firms We assume that access to capital is unconstrained We adjust the discount rate for the possibility of distress We adjust the expected cash flows for the possibility of distress