The multiples valuation of a subsidiary is most appropriate when the subsidiary is publicly traded and the parent owns less than 20 percent of the subsidiary.

Name: The multiples valuation of a subsidiary is most appropriate when the subsidiary is publicly traded and the parent owns less than 20 percent of the subsidiary.
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If the company owns 20 to 50 percent of the subsidiary, then it is appropriate to use multiples valuation and apply an appropriate multiple to reported income.

The Multiples Valuation of a Subsidiary Is Most Appropriate When