How to answer: Which valuation method gives the highest valuation? The short answer: it depends. • Comparable transactions and DCF are both on the higher end • Comparable companies and LBO are both on the lower end This question is part of your valuation questions in an Investment Banking interview. When I was going through the interview process, this question came up multiple times—especially at firms that focus heavily on M&A or private equity. It’s less about reciting a fixed answ...| iBankingAdvice
This is one of the classic questions in Investment Banking recruiting. You will 100% get this question. Knowing how to run a DCF is part of every Investment Banker’s core repertoire. You must know this question in and out. If you show up unprepared or are caught off guard, you will get rejected.This is where an interview situation differs from your academic studies. In college, you will get lecture notes that would devote an entire chapter on this topic. In an interview situation, you must ...| iBankingAdvice