The worksheets in the IRS Comparison folder compare the subject business to IRS data. To use these worksheets, set the IRS Data assumption on the Financial Analysis Assumptions Sheet to True.
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If you own ValuSource's IRS Corporate Ratios Database, you can download IRS data into your Analysis file. To start the IRS Database, select Databases | IRS, or look for a Get IRS Data button in the Desktop Toolbar. This button appears above all of the sheets that use IRS data.
The IRS Corporate Ratios Database supports downloading multi-year data starting with the 2004 version. To perform multi-year analysis, set the IRS Multi-Year assumption on the Financial Analysis Assumptions Sheet to True.
You use multi-year data to compare the subject business to its industry over time. For example, if the subject business is in decline, but the industry as a whole is faring worse, then the value of the company should reflect that its performance is superior to its industry. Conversely, if the subject business is improving, but the industry is improving more rapidly, then the value of the company should reflect that its performance is inferior to its industry. By analyzing the historical trends for the company and its industry, a keen appraiser will be able to draw conclusions about the company’s value relative to comparable businesses.