Series 79 answer hub
Series 79 Valuation Methods
Series 79 valuation questions test whether you know when to use comparable companies, precedent transactions, DCF, and deal-specific judgment.
Direct answer
Which valuation methods are tested on the Series 79?
The Series 79 expects you to understand comparable companies, precedent transactions, discounted cash flow, premiums, multiples, and why each method can produce a different answer.
What to remember
- Comparable companies are market-based and depend on the right peer set.
- Precedent transactions usually include control premiums and deal context.
- DCF depends heavily on assumptions, discount rates, projections, and terminal value.
Sample question
Which valuation method is most directly based on projected free cash flows discounted to present value?
Comparable company analysis
Precedent transactions
Discounted cash flow analysis
Book value analysis
Answer: Discounted cash flow analysis
DCF estimates intrinsic value from projected cash flows and a discount rate, rather than only market multiples.
Related questions
- When do you use EV/EBITDA?
- Why do precedent transaction multiples tend to differ from trading comps?
- What assumptions matter most in a DCF?
Turn it into reps
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Read the explanation once, then answer questions while the distinction is still fresh. That is where the learning sticks.