The worksheets in the RMA Comparison folder compare the subject business to RMA data. To use these worksheets, set the RMA Data assumption on the Financial Analysis Assumptions Sheet to True.
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If you own ValuSource's RMA Database, you can download RMA data into your Analysis file. To start the RMA Database, select Databases | RMA, or look for a Get RMA Data button in the Desktop Toolbar. This button appears above all of the sheets that use RMA data.
The RMA ratios worksheets can have any of three data points: upper quartile (75th percentile), median, and lower quartile (25th percentile). You select the data points from the Financial Analysis Assumptions Sheet.
The RMA Database supports downloading multi-year data starting with the 2002 version. To perform multi-year analysis, set the RMA 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.