Technical - Why Would You Want to Narrow the Range
- 00:46
Investment Banking Superday interview technical question - Why would you want to narrow the range?
Downloads
No associated resources to download.
Transcript
Why would you want to narrow the range, do you think? it really, I feel like it would depend on the way that the football field graph looks, right? If the range is a bit too wide, it doesn't really give enough information, but if you're able to narrow it, you're able to get a better sense, a clear picture of what your company, might be valued at.
Absolutely. I mean, I think it, we have to remember that as an investment banker, when you're providing a valuation range, it's usually advice for a client.
And if you advise them that their company is somewhere between 600 million and a billion dollars, that's quite a wide range, isn't it? If someone said to you, your house is worth somewhere between 600,000 and a million dollars, think I probably do a better job myself.