Houlihan Lokey Interview Questions 2027: Comparable Companies Analysis & How to Answer

Answer Houlihan Lokey valuation interview questions on comps in steps: (1) select truly comparable companies by industry, size, growth, and margins; (2) gather financials and compute multiples; (3) choose the multiple that best fits the situation — EV/EBITDA as the default, P/E or EV/Revenue where appropriate; (4) apply the median to your target. This valuation staple is commonly reported by candidates.

What These Houlihan Lokey Valuation Interview Questions Assess

This question is commonly reported by candidates interviewing at Houlihan Lokey for 2027 roles. It assesses relative-valuation craft: HL interviewers probe peer selection judgment and multiple choice — the two places comps analysis actually requires thinking rather than spreadsheet work.

How to Answer Houlihan Lokey Valuation Interview Questions Like This

Interviewers score technical questions on your process, not just the final answer. State your assumptions first, work through the steps out loud in order, and sanity-check your conclusion at the end.

• Peer selection: same industry, similar size, growth, margins, and business model — explain each criterion.
• Gather and normalize: use calendarized, adjusted financials so multiples are truly comparable.
• Multiple choice: EV/EBITDA as the default (capital-structure neutral); P/E when leverage is similar; EV/Revenue for high-growth or negative-earnings names.
• Apply medians, not means, to limit outlier distortion — and triangulate across two or three multiples.
• Discuss limitations: comps reflect market sentiment, so pair with a DCF for a complete view.

Example line: "I'd screen for peers by industry, revenue scale, growth, and margin profile, then compute EV/EBITDA, P/E, and EV/Revenue on calendarized numbers. EV/EBITDA would be my primary multiple as the most leverage-neutral, applied at the peer median — with P/E as a cross-check where capital structures are similar."

Common Mistakes in Houlihan Lokey Valuation Interview Questions Answers

• Picking peers by industry name alone, ignoring size and growth differences.
• Using mean multiples skewed by one outlier.
• Applying a multiple without justifying why it fits this company.

Comps look mechanical until interviewers probe your peer set and multiple choice — that's where candidates fail. Prepare your selection logic, not just the steps.

Keep Reading

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• Houlihan Lokey 2027 Application Timeline: When to Apply
• Houlihan Lokey Accounting Questions 2027: EBITDA, Accruals & 3 Stateme

FAQ

Why EV/EBITDA over P/E?

EV/EBITDA is unaffected by leverage and non-operating items, making cross-company comparison cleaner — P/E follows once structures are similar.

How many peers do I need?

Enough for a credible median — typically a handful of close peers beats a long list of loose ones.

What if no good peers exist?

Broaden carefully by business model or use precedent transactions — and flag the limitation honestly.

Should multiples be forward or trailing?

Forward multiples usually better reflect value; mention both and explain your choice.

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