CFA Level 2 | Private Company Valuation with free notes (Vol 5 Valuation LM6)

If you are taking CFA Level 2 exam then this refresher podcast is for you. FREE NOTES below (see Google Drive links).

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Important:
1. This podcast is NOT a replacement of curriculum studies.
2. This conversation is based on my notes and understanding.

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Overview:
This podcast discusses private company valuation, contrasting it with public company valuations addressing key differences, such as liquidity, control, and information availability, and how these impact valuation methodologies. Speakers then cover various valuation approaches, including income-based (DCF), market-based (multiples), and asset-based methods. Specific adjustments for earnings normalization, discount rates, and control/marketability premiums/discounts are discussed, along with examples illustrating their application. Finally, they shed some light on different models for estimating the required rate of return on private company equity.

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Tip:
CFA L2 curriculum is gigantic and only way to success is (1) reading and understanding the concepts, (2) regular revisions, and (3) tons of Q&A practice. (4) There are NO shortcuts.

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Resources (PDFs):
1. Debriefing summary:
https://drive.google.com/file/d/11JFb...

2. Knowledge check review:
https://drive.google.com/file/d/17LrO...