Interview Question

Investment Banking Analyst Interview

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Goldman Sachs

What are the three ways of evaluating a company?

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Interview Answers

3 Answers

29

1. DCF 2. Precedent transaction (mult) 3. Publicly traded comparables (mult)

Anonymous on

6

Asset Approach - used to estimate enterprise and equity value. Start with the balance sheet, Identify unrecorded assets and liabilities. Market Approach - how these pricing multiples are determined. Income Approach - Net operating income (I) ÷capitalization rate (R) = value (V)

Archana A K on

0

1: Total Net Worth 2: Earning potential 3: Number of employee

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