- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Valuation
- Learning Module 25. Private Company Valuation
- Subject 4. Valuation Approaches, Earnings Normalization and Cash Flow Estimation Issues
CFA Practice Question
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.
Correct Answer: C
This is because the going-concern premise of value may be uncertain and /or future cash flows may be extremely difficult to predict.
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