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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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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
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.