Market Multiples and Relative Valuation
Relative-valuation questions test comparable selection, EV/EBITDA, P/E, revenue multiples, control premium, minority discount, liquidity discount, outlier handling and reconciliation with DCF.
How to study for the IBBI SFA valuation exam
Treat every item as a valuation file: identify purpose, value basis, valuation date, instrument or business economics, source data, method, assumptions, adjustments, sensitivity, report wording, and professional-duty boundary.
Core concepts
Concept 1
comparable company and transaction evidence
Exam cue: Identify the regulator, role, resident or client fact, document, and timing cue.
Concept 2
control, minority and liquidity adjustments
Exam cue: Check whether the question asks about the certification exam, renewal/CPE, field workflow, or compliance decision.
Concept 3
normalised denominator selection
Exam cue: Choose the official-process answer before the familiar shortcut.
Targeted study blocks
India exam focus
Market Multiples and Relative Valuation
Relative-valuation questions test comparable selection, EV/EBITDA, P/E, revenue multiples, control premium, minority discount, liquidity discount, outlier handling and reconciliation with DCF.
Risk pitfalls and guardrails
applying listed-company multiples to an illiquid minority stake without adjustment
Guardrail: Avoid answers that ignore the India-specific rule, official document, disclosure, consent, KYC, privacy, or renewal context.
mixing enterprise-value and equity-value denominators
Guardrail: Avoid answers that ignore the India-specific rule, official document, disclosure, consent, KYC, privacy, or renewal context.
Memory anchors
EV/EBITDA
EV/EBITDA compares enterprise value with normalised operating earnings before financing effects.
P/E
P/E compares equity value with earnings available to equity holders.
Comparable Set
Comparable companies should match industry, scale, margin, growth and risk as closely as possible.
Control Premium
Control premium may apply when the valuation interest carries control rights.
Liquidity Discount
Illiquid securities may require a liquidity or marketability discount if evidence supports it.
Market Multiples and Relative Valuation: first read
Relative-valuation questions test comparable selection, EV/EBITDA, P/E, revenue multiples, control premium, minority discount, liquidity discount, outlier handling and reconciliation with DCF. First read the official source, role boundary, and stated facts together.
Market Multiples and Relative Valuation: shortcut trap
In Securities, Financial Assets and Business Valuation, eliminate the fastest-looking answer if it skips a document, disclosure, consent, calculation, quality check, or audit trail.
Market Multiples and Relative Valuation: exam-safe action
The exam-safe answer keeps user protection, the current India rule, a traceable record, and role-appropriate escalation together.
Market Multiples and Relative Valuation: review cue
For IBBI Valuer SFA review, ask whether the answer follows the official workflow and can be defended later in an audit.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
What does an EV/EBITDA multiple compare?
What does a price-to-earnings multiple compare?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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