Best Valuation Method

Theoretically the DCF is the most "correct" valuation methodology, since we should be able to determine the value of anything by finding the net present value of its future cash flows. Notice how I said "most correct" and not best. When you are valuing a company, the best valuation methodology is the one that provides the most accurate estimate. Some companies are not market comparable, and trading comps are simply useless. Other companies such as a biotech or tech startups have unpredictable cash flows (kind of hard to find the NPV when you can't properly predict future cash flows; a probability weighted DCF can be used for these companies in some cases). FIG has similar issues due to the use of debt and net working capital in their balance sheet, so a DCF is also not the best approach here.

All in all, a mixture of different valuation methodologies and common sense is what we consider "best". Some other methodologies include: LBO analysis, sum of the parts, NAV (net asset value) etc.

Another thing here, there is no relationship among DCF, trading comps, and precedent transaction comps that always holds, but transaction comps tend to give you a higher valuation due to the control premium built into acquisition (a control premium is any amount paid by the buyer in excess of the target's actual value – e.g., you'll usually see deals where the strategic buyer pays $X in excess of the target's share price).