Question:

What are some problems with using a Comparable Companies analysis?

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Answer:

No two companies are exactly alike and thus aren't 100% comparable
Share prices of publicly traded companies can fluctuate depending on a variety of factors, which may affect the valuation
Public company share prices may be depressed if a company is a small-cap company or is thinly traded

Other

Valuation

What are some other possible valuation methodologies besides the main three?

What is a Sum of the Parts valuation and when would you use it?

When would it not make sense to use a DCF in a valuation?

When would you use an LBO analysis as a part of your valuation?

What are the most common valuation multiples?

How would you rank the 3 major valuation methodologies from highest to lowest in expected value?

What are some problems with using a Precedent Transactions analysis?

What is a Liquidation Valuation analysis and when would you use it?

What are the three main valuation methodologies?

How would you present your various valuation methodologies to a client?