What are the three main valuation methodologies used in investment banking?
- A Comparable companies, precedent transactions and discounted cash flow
- B Book value, market value and tax value
- C Historical, current and forecast
- 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.





