Valuation Methods

Here's a common question:

"How do you value a company?"

There are a ton of ways to answer this. I'll just list a few ways to do it:

1. Discounted Cash Flow
2. Comparable Transactions
3. Comparable Companies
4. LBO valuation
5. Sum-of-the-parts
6. Liquidation value

There are even more but usually if you list five or six that is enough to sound smarter than the average American (one of many things that you could say to sound smarter than the average American I guess).

More interview questions to come...