- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Valuation
- Learning Module 27. Private Company Valuation
- Subject 4. Valuation Approaches, Earnings Normalization and Cash Flow Estimation Issues
CFA Practice Question
What is the private company valuation approach that corresponds to the discounted cash flow models in public equities analysis?
B. The market approach.
C. The asset-based approach.
A. The income approach.
B. The market approach.
C. The asset-based approach.
Correct Answer: A
It is also similar to present value models used in public equities analysis.
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