All programs
Insight programs
What changed
Competitions

Contacts
Find people
Write a note

Learn
Drills
My answers
Markets
Resume review
Resources

Overview
Find your fit
Guides

Learn Drills My answers Markets Resume review Resources

Learn

Learn/Valuation: comps and precedents

Go to

Learn Valuation: comps and precedents

0 of 6 lessons, sign in to save

B Basic

The three methods and the football field8m
Comparable companies: building the setPro11m
Multiples in practice: from median to share pricePro9m

A Advanced

Precedent transactionsPro10m
Other methods: sum of the parts, dividends, liquidation, LBOPro12m
Judgment: which method, and the common pitfallsPro9m

FlashcardsPro0/24
Basic quizPro80% passes
Advanced quizPro80% passes
Terms

Valuation: comps and precedents

0
of 6 lessons: 0
of 24 cards

Flashcards Start the first lesson

How bankers put a value range on a company by looking at what similar companies trade for and what buyers have paid, and how to defend the range when someone pushes.

BBasic3 lessons

1The three methods and the football fieldBankers value a company three main ways and show the results side by side. Knowing what each method assumes is worth more than memorizing the list.8 min
2Comparable companies: building the setProTrading comps are only as good as the peers you pick and how cleanly you line their numbers up. Most of the work is in the spreading, not the division.11 min
3Multiples in practice: from median to share priceProThe comps table gives you a multiple. Applying it to your company and walking back to a share price is a five step calculation you should be able to do aloud.9 min
Basic quizPro9 questions, 80% passes

AAdvanced3 lessons

4Precedent transactionsProPrecedents price control: what buyers paid to own whole companies. They usually sit above trading comps, and the data is messier than it looks.10 min
5Other methods: sum of the parts, dividends, liquidation, LBOProBeyond the big three, a handful of methods fit particular companies. Each one is a short calculation and a clear sense of when it applies.12 min
6Judgment: which method, and the common pitfallsProThe arithmetic is the easy part. The real skill is saying which number you believe, why, and what could make it wrong.9 min
Advanced quizPro9 questions, 80% passes