Question 6

a) Describe the Comparables Valuation method and for what purpose market participants use this method. Give some examples of commonly used components one would see in a Comparables Valuation table.

[5 marks]

b) Describe the Precedent Transactions valuation method and for what purpose market participants use this method. Give some examples of commonly used components one would see in a Precedent Transaction table.

[5 marks]

c) Describe the Sum of the Parts valuation method and for what purpose market participants use this method. Discuss the investment implications of SOTP analyses which exceed market valuations.

[10 marks]