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Basic Question 2 of 6

At the earliest stages of development, a private company may best be valued using a(n) ______ approach.

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

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Colin Sampaleanu

Colin Sampaleanu

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.