Which of the following valuation methodologies is built upon the premise that similar companies provide a highly relevant reference point for valuing a given target due to the fact that they share key business and financial characteristics, performance drivers, and risks?

Which of the following valuation methodologies is built upon the premise that similar companies provide a highly relevant reference point for valuing a given target due to the fact that they share key business and financial characteristics, performance drivers, and risks?






A) Comparable companies analysis
B) Precedent transactions analysis
C) Discounted cash flow analysis
D) Leveraged buyout analysis






Answer: A