Module VI· Football Field BuildAdvanced
Question

How do you treat method inconsistency in a football field, such as DCF at 80 and comps at 120?

Answer

Do not average blindly. Explain why methods diverge: different growth assumptions, market optimism, control premium, cyclicality, margin normalization, or company-specific risk. Recheck inputs and comparability. If divergence is real, present it as a valuation debate and focus on which method best captures the asset's economics.