URGENT HELP

earnings multiples, assets, intangibles, dcf, industry, etc pick.

Past... Present... Future

Comparable transactions... Comparable multiples... DCF/LBO

If you can't explain it in the form of a response to an interview question, I'd say that you are still unfamiliar with the basic methodologies. And there aren't 3 basic methodologies, there are 4 (ddd87 listed them above). You'll check the box if you can speak to these 4 methodologies intelligently.

You may be able to get bonus points if you can start talking about multiples and which ones are appropriate for different industries. This really isn't expected of an SA though.

Check out the WSO tech guide, I think it has that exact question, and explains how to go about answering it...

way to go, thinking of the hard questions the day before the interview

Sounds like you're looking more for a good way to approach the question in an interview rather than the actual answer to it- which I think you already know.

The problem with the question is that the interviewer is asking an OBNOXIOUSLY vague question that requires a very detailed response- either by accident or on purpose.

After they asked the question, I'd probably smile and say that it's hard to cover EVERYTHING in 30 minutes, go into a brief three or four sentence overview of the methods, and then take an example of a firm that would work best for something I was most comfortable with (IE: A Pipeline MLP- which has relatively stable earnings and is required to dstribute ALL of them- for DCF), and explain how that would get priced. For bonus points (and to keep the interviewer from getting in extra questions that I might not know the answer to), I'd explain the caveats and strengths/weaknesses of the pricing method. At that point, I'd ask if there were any other specifics about pricing methods that the interviewer wanted to know.

Give the interviewer plenty of opportunities to interrupt you. He may want to focus on other parts of the question or move on to something else.

so I just learned in the morning that the interview was postponed and will now be next thu...anyway, i thought the 3 basic ways to value a company were

dcf comparable comp precedent transactions

So if I am asked the question on how to value a company, I just explain each briefly and ask them if they would like me to walk them through a dcf...is that right?

Also, anyone who's been through SA or FT interviews and was asked this question, how did you guys respond and what was the interviewers reaction to your responses?