- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Valuation
- Learning Module 25. Private Company Valuation
- Subject 1. Private and Public Company Valuation: Similarities and Contrasts
CFA Practice Question
Which factor has a positive impact for private company valuation?
B. Lack of pressure from short-term investors.
C. Liquidity of equity interests in business.
A. Concentration of control.
B. Lack of pressure from short-term investors.
C. Liquidity of equity interests in business.
Correct Answer: B
A and C may reduce the value of the shares in private companies and thus are negative.
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