Given Peloton's rapid growth during the pandemic, Lauren's boss would likely be interested in a model like the Discounted Cash Flow (DCF), which considers future cash flow projections. These projections, at that time, were notably favorable, potentially sparking optimism about the investment opportunity. Conducting a market-comparable valuation for Peloton presents a unique challenge. Unlike other companies, Peloton combines exercise equipment and subscription services, placing it in a distinctive market position that could pique the audience's interest in its potential. To determine Peloton's market value, you would need the market value of Peloton's equity and debts, the costs of their equity and debts, and their corporate tax rate. However, trying to get a market value of Peloton's equity would be difficult, as they only have a one-year public trade record. Lauren could attempt to use a similar company, but as mentioned in question one, there is only a small group of companies like Peloton. Another option could be to use their historical data, which could also be misleading with their short trading history. Investors may consider qualitative factors like the strength of the management team and the company's capacity for innovation. A strong team and a track record of innovation can indicate a company's ability to navigate challenges and capitalize on opportunities, eventually leading to profitability. For example, a company might be investing heavily in growth and cus