Private firm valuation....a FORGOTTEN CHAPTER important, company, through

anish

I just realized that I FORGOT to read Chapter 44!!!! Private company valuation....and now I am wondering how important that is. Is it even worth going through???

giorgio10

I believe it's new or at least expanded... Stalla seemed to think there was a high likelihood of it being tested.

Definitely do not rely on Secret Sauce to cover it. They do not mention a single calculation. If you have access to the Stalla videos they do a great job of explaining the core concepts and formulas.

luda002

Hm, ok so I guess I should have a go at this. Seems like a really long chapter though :-(

flyinggirl

I believe it's a completely new chapter this year for the equity section.

Analyze_This

it's gonna be on the test!

kickthatcfa

definitely take the time to review this chapter in CFA curriculum. maybe do EOC by glancing at answers and you can hit the important points that way. It's nothing complicated, don't waste a single second with stress about having missed it, just review it.

eoin

There are two vignettes following the text so I'd like to think it will be on the test. I'm using the # of vignettes following the CFAI text as a gauge to the likelihood of something being tested. Relative to the other equity readings, private company valuation had as much as or more vignettes than any other section

stalkey

The thing about the private company valuation section is that it comes at the end of what is already a very long three study sessions on equity. For some reason, there's been an odd temptation for me to hurry through the end of readings in order to feel the satisfaction of having "finished" a section and eager to get on to the next one. I would throw topics like Treynor-Black into this category. It's a rough feeling to do my final review with just a few days to go and realize there are a few formulas/concepts that I definitely need to brush up on.

So you're hardly the only one who has to take another good hard look at topics like private company valuation.

Been studying so hard for so long, posting on AF is like taking a break for me!

defour44

kingstongal
This reading is fairly straightforward - can be done in 4hrs or so. Find yourself 4 hrs today/tomorrow and get it done.

i am in 100% agreement dapoopa - some of these readings at the end of a long section are hard to concentrate and absorb....

tobeornottobe

That's interesting...has there been a history of new matieral being more heavily tested then old material ?

And other then private firm valuation, what else is completely new for the 2010 exam ?