@survivefinance: Which valuation method is best to value private business? DCF, trading comparables, or transaction comparables? The answer is none of the above because a DCF, trading comparables, and transaction comparables are all substantively the exact same thing. They each have a slightly different use case, but each is actually underlying a DCF. With a traditional DCF, we explicitly value cash, flows and arrive at enterprise value. With trading comparables, we use publicly traded peers to make an implied assessment about the enterprise value…which is just a shorthand DCF. And finally with transaction comparables, we look at past purchases of similar businesses to make an implied assessment about enterprise value…which is also a shorthand DCF. In the end, each of the three methods has relative puts and takes, but the conceptual underpinning of all three is a DCF valuation. Save this for IB recruiting season #investmentbanking #privateequity #financecareers #financejobs #bankinginterview

financeable

Open In TikTok:

Region: US

Friday 21 August 2026 14:45:05 GMT