Seeing is believing!

Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.

Basic Question 1 of 6

What is the private company valuation approach that corresponds to the discounted cash flow models in public equities analysis?

A. The income approach.
B. The market approach.
C. The asset-based approach.

User Contributed Comments 0

You need to log in first to add your comment.
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh

Craig Baugh

Learning Outcome Statements

explain the income, market, and asset-based approaches to private company valuation and factors relevant to the selection of each approach;

explain cash flow estimation issues related to private companies and adjustments required to estimate normalized earnings;

CFA® 2025 Level II Curriculum, Volume 4, Module 25.