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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.
B. market.
C. asset-based.
A. income.
B. market.
C. asset-based.
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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
calculate the value of a private company using free cash flow, capitalized cash flow, and/or excess earnings methods;
explain factors that require adjustment when estimating the discount rate for private companies;
compare models used to estimate the required rate of return to private company equity (for example, the CAPM, the expanded CAPM, and the build-up approach);
CFA® 2025 Level II Curriculum, Volume 4, Module 25.