Like the recent transactions method, comparable company valuation estimates do not require the addition of a purchase price premium.

Question

Quizplus · Accepted Answer

Comparable company valuation typically involves analyzing the market values of similar companies, but it does not inherently include a purchase price premium. The purchase price premium is specific to transactions and reflects the additional amount a buyer is willing to pay over the market price to acquire a company, which is not a direct component of the comparable company valuation method.

Like the Recent Transactions Method, Comparable Company Valuation Estimates Do