The following industry was excluded from TOP 101
Real estate (companies that operate in real estate development or are involved in speculative real estate transactions). Most of the companies within this industry do not have stable cash flows as well as their value is derived from the value of real estate. For the companies present within this industry at the moment experience dificulties which are correlated with the with the overall pesimism in Latvia's real estate market. Thus, it is extremely hard to predict this business for the next five years. Moreover, due to the current economic situation the valuation could deviate from the intrinsic value.
Holding companies were valued only if consolidated financial statements were available.
If financial statements were not available for the financial year 2006, then financial statements for 2005 were used.
In cases where the financial data of a company were limited, by consulting experts it was assessed whether or not a company would be in the TOP 101. (In this case enterprise value was derived by using the comparable company multiple method.)
If there were suspicions that a company is a part of a financial schemes, the company was excluded form the TOP 101.
Specific risk of a company was not taken into account, since only publicly disclosed information was used. The information required to evaluate specific risk often is not publicly disclosed by companies.
Companies that, according to our opinion, were of particularly high risk profile were excluded from the TOP 101