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Basic Question 3 of 6

To select a private company valuation approach an analyst should consider the following factors:

I. The nature of operations.
II. Stage in lifecycle.
III. Size.

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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

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.