Wide Valuation Range
A spread across valuation methods of 20% or more, common for cyclical businesses, businesses in regulatory transition, or businesses with limited comp universes. A wide range is not a defect; it is honest reporting of genuine analytical uncertainty driven by underlying assumption disagreement (typically about terminal value, comp-set selection, or synergy assumptions in precedent transactions). The disciplined response is to identify WHICH assumption is driving the divergence and ask which view of that assumption is most defensible, rather than reporting a narrow midpoint that suppresses the diagnostic information the range carries.
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Related terms
Ambiguity Aversion · Anchored Assumption · Asset Beta · Bank ROE Spread · Banker Pitch Deck · Beta
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