Technical - Methodology for a Valuation Range
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Investment Banking Superday interview technical question- Methodology for a valuation range.
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If I asked you for a range, a valuation range rather than just a number, how do you think you would go about that? Yeah. Okay. So I am looking at the fact that the company B is one 30 divided by 15 8.6 times.
So I would begin at 8.6 times, so perhaps 8.6 times 75, which is around 650.
so I might begin my valuation range at 600, sorry, at 650.
and then at the company D we're looking at a 12.5%, valuation multiple. So 12.5 times 75, around 940 ish.
So I would give between that sort of range.
but if I were to dive a little bit closer, I could maybe look, um, narrow that to 25th percentile to 75th percentile.