asked 53.1k views
3 votes
Which of the main 3 valuation methodologies will produce the highest valuations?

a. It depends
b. Public Comps
c. Discounted Cash Flow (DCF)
d. None of the above

asked
User Dur
by
8.1k points

1 Answer

3 votes

Final answer:

It depends on several factors, such as market conditions and specific assumptions, which valuation methodology yields the highest result. No single method is guaranteed to consistently produce the highest valuations.

Step-by-step explanation:

The question relates to the main 3 valuation methodologies used in finance to determine the value of a company. These methods are Public Comps, Precedent Transactions, and the Discounted Cash Flow (DCF) analysis. The answer to which of these methods will produce the highest valuation is it depends, as the outcome is contingent on various factors including but not limited to the current market conditions, the company's financial health, growth prospects, and the specific assumptions used in each methodology.

answered
User Kenial
by
8.7k points
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