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.
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