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What are the three main valuation methodologies used in investment banking?

  1. A Comparable companies, precedent transactions and discounted cash flow
  2. B Book value, market value and tax value
  3. C Historical, current and forecast
  4. D Asset, income and expense
Answer

Comparable companies, precedent transactions and discounted cash flow

A leveraged buyout analysis is often added as a fourth, giving a floor valuation based on what a financial sponsor could pay.

All Investment Banking MCQs

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