ADVENTIS FMC LEVEL 2 SG TEST QUESTIONS WITH CORRECT
ANSWERS 2024 UPDATE.
Two types of valuation - Answer -Relative and Intrinsic
Relative Valuation - Answer -Refers to methods that compare the price of a company to the market
value
of similar assets
Two Types of Relative Valuation - Answer -Comparable company analysis and Acquisition
comparable
analysis
Comparable Company Analysis - Answer -Used to determine the value of a company by applying
relevant
multiples of peers to company's metrics.
-Enterprise Value/EBITDA
-Enterprise Value/Revenue
-Equity Value/Earnings
Acquisition comparables - Answer -represent comparable acquisitions that have taken place and
been
publicly announced.
Differences of Relative Valuation - Answer -Multiples for acquisition comparable are typically
greater
than multiples for comparable companies because acquirers typically need to pay a premium to
the
current share price to gain control of the company
Intrinsic Value - Answer -Value of the company through fundamental analysis without reference
to its
market value, instead looking to a company's ability to generate cash flow
DCF analysis - Answer -The discounted cash flow analysis discounts all project future cash flow
of a
company to the present by using the concept of time value of money
ANSWERS 2024 UPDATE.
Two types of valuation - Answer -Relative and Intrinsic
Relative Valuation - Answer -Refers to methods that compare the price of a company to the market
value
of similar assets
Two Types of Relative Valuation - Answer -Comparable company analysis and Acquisition
comparable
analysis
Comparable Company Analysis - Answer -Used to determine the value of a company by applying
relevant
multiples of peers to company's metrics.
-Enterprise Value/EBITDA
-Enterprise Value/Revenue
-Equity Value/Earnings
Acquisition comparables - Answer -represent comparable acquisitions that have taken place and
been
publicly announced.
Differences of Relative Valuation - Answer -Multiples for acquisition comparable are typically
greater
than multiples for comparable companies because acquirers typically need to pay a premium to
the
current share price to gain control of the company
Intrinsic Value - Answer -Value of the company through fundamental analysis without reference
to its
market value, instead looking to a company's ability to generate cash flow
DCF analysis - Answer -The discounted cash flow analysis discounts all project future cash flow
of a
company to the present by using the concept of time value of money
