- CFA Exams
- CFA Level I Exam
- Study Session 11. Equity Valuation (3)
- Reading 31. Private Company Valuation
- Subject 6. Market approach methods of private company valuation
CFA Practice Question
For many very small private companies with limited asset bases, the most commonly used multiples are:
B. EBITDA multiples.
C. Net income based multiples.
A. P/E multiples.
B. EBITDA multiples.
C. Net income based multiples.
Correct Answer: C
This is due to the likely absence of meaningful financial data.
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