In my interview today with an Equity Capital Markets Group I was told that you do not need to use DCF, Comparable Company and Precedent Transaction Analysis to value a public company because you simply use Market Capitalization (shares outstanding * price of share). However in my cover letter I discuss a case study I completed in the Breaking Into Wall Street Program where I valued a REIT using a NAV, comparable company, and Precedent Transaction analysis. The REIT is publicly traded so am I incorrect? Does the valuation using different methods make sense?
Trending Content - Investment Banking Forum
| +252 | Why UBS Is the Worst Place to Start Your IB Career | 37 | 8h |
| +198 | UBS 2nd Year Analyst Q&A (2026) | 36 | 9h |
| +69 | Firm Thinks I'm Lying About Offer | 20 | 1d |
| +60 | Indiana University Fraternity Pipelines | 36 | 20h |
| +50 | Rogo AI | 20 | 1d |
| +50 | Elite Boutique interview questions | 15 | 7h |
| +45 | Suspended for a Year | 19 | 1d |
| +39 | Stay at Weak Dealflow Team or Lateral? | 12 | 2d |
| +33 | What's your craziest "hardo" story? | 6 | 29m |
| +25 | Wolf of Wall Street vs. Reality: Anyone else feel scammed by the movies? | 8 | 16h |
Career Resources
I guess technically, the current value of a public company is the market cap. But the purpose of a DCF and other valuation methodologies is to gain a better understanding of what the true intrinsic value of a company is. For example, the value of tesla right now is ~$115B based off the share price. But the intrinsic value could be completely different than its current valuation.
Tbh I would be a bit worried if the group you're interviewing with believes you shouldn't use a DCF or other methodologies. Market cap is useful but its subject to a lot of different factors and can fluctuate significantly...
So whats your opinion on the cover letter? Are those valuation methods used in the case study necessary?
Looks like The Pyschology's comment below probably answers your question better. I am less familiar with ECM so I trust their opinion more haha
Enim iusto dolores aut fugiat delectus suscipit. Mollitia omnis et ex neque voluptas voluptate consequatur modi. Est tenetur harum et dolorum totam.
Et debitis aliquam optio saepe aut saepe. Amet blanditiis sed itaque quaerat sit labore. Qui consequatur numquam ut sint exercitationem aut. Porro aut autem temporibus molestiae itaque. Dolores quam facilis enim et.
Rerum aliquid architecto quam commodi earum id est. Ad omnis sequi quae vel dolorem corporis deleniti.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Praesentium ea voluptatum et architecto non. Pariatur consequuntur veritatis eos animi commodi. Voluptas eum ea quis. Aut facilis illo quae error.
Et quo aut aut dolor quaerat ad nobis accusantium. Reiciendis omnis nulla autem adipisci.