Breaking into wallstreet - Study guides, Class notes & Summaries

Breaking into wallstreet Questions with complete solution Relative valuation - correct answer Comparing a company to what similar companies are worth. You mostly look at other public companies and recent m&a deals (precedent transactions) to estimate what your company might be worth. universally applicable except for when the data is spotty and/or the company you're analyzing is unique and can't be compared to other companies Intrinsic valuation - correct answer estimating the net pre...

Advantages of DCF - answer-Not as subject to market fluctuations. Theoretically sound since it is based on the ability to generate cash flow Advantages to precedent transactions - answer-Based on what real companies have actually paid for other companies Advantages to public comps - answer-Based on real data as opposed to future assumptions correlation between growth rates and margins and multiples - answer-a company with higher EBITDA growths tends to have higher EBITDA multiples than ...