Technical Interview Q: 2 Companies, Similar Financials / Business --> Different Valuations?
Hi all,
Been asked a similar question from several interviews and I don't think I've ever hit the nail on the head for this technical question.
If two companies have similar financials and business models, why would they have different valuation multiples? Would appreciate any insight on this! Thanks.
market share might be a good point to bring up. had a similar question in two interviews and this is the answer i gave but i'm sure it's not the only correct answer
Reputation in their respective sectors, leadership in management, and key catalysts coming up are ones I can think of
I said it was based on investor expectations going forward - relatively speaking one may have just had an earnings miss, or maybe investors just generally expect positively for one's products to be better in the future. Some interviewers were cool with this, others were iffy about it. But I appreciate the answers so far. Wonder if there's more?
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