What is 'Valuation'?

Start of Class test

1. This class is titled 'Valuation'. This class is primarily about

a. Advanced techniques in valuation

b. Valuing securities

c. Valuing publicly traded companies in developed markets

d. Valuing privately owned businesses

e. Valuing any asset or business

2. The most important skill that you need when doing valuation is

a. Accounting

b. Financial modeling

c. Grounding in financial theory

d. Economics

e. None of the above

3. The objective when valuing a business or asset

a. Is to get a conservative estimate of value

b. Is to get a reasonable estimate of value

c. Is to get a range of values across possible scenarios

d. Is to get a number to use in negotiations/ deal making

e. Is to get a 'legally' defensive estimate of value

4. To measure the quality of a valuation of a business/company, you should look at

a. The detail in the valuation; more detail = better valuation

b. The precision of the estimate; more precise = better valuation

c. How close the value is to the market price, closer = better

d. How much money you make on the company based on the valuation

e. None of the above