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How to value a brokerage company?

QuestionsHow to value a brokerage company?
Neo asked 5 years ago
1 Answers
Victor Chng Staff answered 5 years ago

Hi Neo,
 
Based on my personal experience, I think that brokerage is cyclical in nature because they tend to earn more during boom and less during crisis. You can find what their average earnings multiply by their average PE range. Ideally is to buy below their average PE range.