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(71) What's the true purpose of valuing a company with a DCF, comparable public companies, and precedent transactions? If the company is your client, you might use this valuation to advise the Board of Directors on how much the company might be worth in a sale. If you work at a hedge fund or asset management firm, you might value a company to determine whether or not you could make money by investing in it. A valuation tells you what the company SHOULD be worth today. A valuation tells you what the company IS worth today. A valuation using those methodologies shows you how much a company could earn if it sells off all its assets