The Cash-to-Equity method (CtE) is a method that distinguishes itself because the valuation is made from the perspective of the provider of equity. The methods discussed before, primarily value the enterprise as a whole. Whereas the CtE method is generally thorough, under specific circumstances it is preferred to apply this method. Especially in those cases where shareholders take up exceptional and/or essentially different positions (preferred dividends, loans involved, or e.g. different fiscal positions), the CtE method is extremely strong. If those circumstances do not occur, then the APV method often provides more insight in the valued object than the CtE method.
