Valuation is not without its challenges. Some of the main difficulties include:
Subjectivity: Many valuation methods involve subjective judgments and assumptions. Data Availability: Accurate and comprehensive data is crucial; lack of it can lead to inaccurate valuations. Market Volatility: Fluctuations in the market can affect valuation significantly, making it a moving target. Complexity: Some methods like DCF can be complex and require a deep understanding of financial modeling.