A method list is only half an answer
JP Morgan's 2027 Investment Banking Video Interview includes a direct valuation question. It exposes candidates who can name the standard approaches but cannot explain what drives them or when one deserves more weight.
Candidates who have practiced the real question can organise the answer before the timer starts. That creates room for judgment instead of a rushed textbook recital.
The real valuation prompt
Here is the exact question:
Please share your experience of valuation and what different methods or factors might be used?
Where candidates give away points
- Listing three methods and stopping. The interviewer still needs to hear what each method measures and when it is useful.
- Mixing enterprise and equity value. A loose bridge between the two makes even correct terminology sound unreliable.
- Ignoring assumptions. Growth, margins, discount rate, terminal value, and comparable selection drive the result.
- Treating precedent deals as current trading. Control premiums and transaction context matter.
- Giving one precise answer. Valuation is usually a range that needs triangulation and sensitivity work.
Answer with method, driver, and use case
A strong answer starts with relevant experience, even if it came from coursework, a case, an internship, or an investment project. It states what was valued, why the valuation was needed, and what the candidate personally built or reviewed.
The framework then covers discounted cash flow, trading comparables, and precedent transactions. For each method, the candidate explains the core inputs and the reason it may be more or less informative in the situation.
The close brings the methods together. A banker compares the ranges, tests the assumptions that move them most, and explains why the final view gives more weight to some evidence than others.
See the rest of the Investment Banking set
This technical prompt is one part of the JP Morgan Investment Banking assessment. OpenInterview has the complete question set so candidates can prepare technical reasoning alongside motivation and behavioural examples. Familiarity with the wording helps the answer sound structured without becoming scripted.
