Common Valuation Approaches

This problem practices the core valuation framework that comes up in nearly every investment banking interview. A strong candidate should know the main approaches, understand how each one works, and be able to explain when a banker would use market based methods, intrinsic value methods, transaction based methods, or special situation methods such as LBO and liquidation analysis. It also tests whether you can distinguish between valuation techniques that rely on current trading multiples, precedent acquisition data, projected cash flows, or distressed asset recovery, which is important because interviewers want to see that you understand both the mechanics and the purpose of each approach.