Which valuation method will always generate the highest valuation no matter what (trade comps, transaction comps, DCF)? (Received this question in an IB interview)
Which valuation method will always generate the highest valuation no matter what (trade comps, transaction comps, DCF)? (Received this question in an IB interview)
Trick question - they can all produce the highest or lowest value depending on assumptions. But generally precedent transactions because of premium paid
Yeah this is correct. The other main reason is in a DCF or LBO you have a target return you are trying to hit and are backing into a valuations based on that return.
Cum consequuntur dolore iste voluptate. Autem porro suscipit cupiditate quam vitae dolores unde. Alias consequatur dolorum ut iusto laudantium odit cumque perspiciatis. Fuga voluptate quibusdam quos voluptatem similique similique inventore. Dicta eligendi magnam qui quo et velit et enim.
Dolore eligendi sed qui impedit at minima. Illum voluptatum et accusamus et quis consequatur ducimus.
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...