Question

What are the three most common methods of valuing companies? What are the advantages and disadvantages of each?

Answer 1

When valuing a company as a going concern there are three main valuation methods used by industry practitioners: (1) DCF analysis, (2) comparable company analysis, and (3) precedent transactions. These are the most common methods of valuation used in investment banking.

Comparable

Answer 2

When valuing a company as a going concern there are threemain valuation methods used by industry practitioners: (1) DCF analysis, (2) comparablecompany analysis, and (3) precedent transactions. These are the most common methods of valuation used in investment banking.