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Question 1

which are the primary valuation methodologies used on Wall Street?

Answer 1

1) comparable companies analysis
2) precedent transactions analysis
3) DCF analysis
4) LBO analysis

Question 2

what us the difference between a company’s intrinsic value and its market value?

Answer 2

The valuation implied for a target by a DCF is also known as its intrinsic value , as opposed to its market value , which is the value ascribed by the market at a given point in time.

Question 3

which companies are attractive LBO candidates?

Answer 3

Generally speaking, companies with stable and predictable cash flows as well as substantial asset bases represent attractive LBO candidates.