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How would you calculate the value of a cow?

PrepLounge: Personal Fit
New answer on Feb 02, 2024
27 Answers
7.6 k Views
Anonymous A asked on Oct 01, 2019

How would you answer this question in your Personal Fit interview? Receive feedback on your answer and browse through the Q&As to review the approaches of other applicants and experts.

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Best answer
Antonello
Expert
Content Creator
replied on Oct 28, 2019
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching

You should assess the value generated, the selling value and the costs:

1. Value generated during cow possession:

  • milk
  • sons
  • compost

2. The selling value will depend on:

  • remaining value generable
  • meat value
  • other parts value (e.g. horns, skin)

3. Main costs:

  • fixed costs amortization (e.g. farmer wage, structures, insurance, cow equipment)
  • medical expenses
  • feed and water

Best,

Antonello

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Gabriel replied on Feb 02, 2024

Ich würde die Kuh wiegen und ihr Alter bestimmen und dann mit den Preisen vergleichbarer Kühe vergleichen

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7
Anonymous L replied on Dec 13, 2023

It would depend on the value it can produce in it's lifetime. If selling dairy products made from the cow is more profitable i will keep the cow, if selling it's meet is more profitable i will sell the cow for it's meat and hide

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7
Chika
Certified
replied on Jan 31, 2023
Experience Hire Recruitment Track

First I would research market rates on different cows and see where this cow fits. I would assess the breed, age, gender, and it's living conditions to come up with a calculation on value. 

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2
Jonathan replied on Mar 20, 2023

Liters of milk per year plus births over lifetime plus salvage value

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1
Marlon replied on Mar 02, 2023

The variable of the milk it produces times the lifespan and the “scrape value” for selling it at the end if it's lifetime.

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1
Anonymous J replied on Oct 28, 2022

There are three ways to price the cow

1)benchmarking: see how much cows of competitors cost

2)cost based pricing. Calculate how much the products of the cow cost to calculate revenues and subtract the costs of farming the cow (labor, food, facilities), finally add a profit margin

3)price based: how much is the farmer willing to pay for the cow. 

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1
Tim replied on Nov 25, 2019

In answering this question I would focus on portraying creativity and innovation, instead of focussing on the detailed value analysis.

My dad happens to be a farmer, so my answer would be to give him a call, which will probably not be an answer the interviewer is expecting

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1
Anonymous C on Dec 22, 2020

and probably not an answer the op was expecting.

Anonymous K replied on Nov 08, 2023

From an valuechain perspective I'd divide the cow into it's categories of value. 

This could be:

1. Milk production

2. Meat production

3. Leather production

4. Other (Bones etc.)

Then i would try to valuate the lifetime earnings per category.

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Nisrine replied on Oct 12, 2023

the age

the cost and the quality of the alimentation it has

the cost the elevage and estable

the milk that it can give

the quality of the meat

the race

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0
Andrea replied on Oct 04, 2023
Senior Associate Consultant PwC - Working on case studies for MBB

I would asses the value generated: 

- milk produced

- grass consumed

- amount of cows in the factory

- percentage of production produced by each cow

 

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0
Anonymous replied on Mar 01, 2023

based on the KG and its meat

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0
Imke replied on Feb 17, 2023

Determine how much the cow consumes (food, water, housing,…) compared to its weight

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0
federica replied on Jan 17, 2023

I would access a market value of the cow and based on these characteristics i will assume the value of my cow

 

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0
Vanessa replied on Aug 09, 2022

Schätzung durch Vergleichswerte bspw. Wertermittlung eines Bullen

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Simon replied on Jul 17, 2022

Like a stream of cash flow. The terminal value in this case would be the amount the butcher would pay at the end of the lifetime. 

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Javier replied on Jul 06, 2022

2 main factors considering we can obtain meat or other resources from the cow
- NPV: How much is the cow worth today (based in weight, for example)
- Future value: How can I profit from the cow in the long term (by producing milk or growing)

Additional considerations could include cultural factors: if the cow is considerated sacred in our culture, it's invaluable.

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Anonymous I replied on May 22, 2022

I would try to estimate the value a cow produces each month and then estimate the life time of a cow

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Anonymous H replied on May 09, 2022

Value of milk which can be extracted from her lifetime + Value of meat which can be sold in the market.

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Anonymous G replied on Mar 18, 2022

1. Analyse the market & competition

2. Cost of “production”

3. Premiumness of the product (e.g. organic vs convetional, origin)

4. Demand

 

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0
Praise Dlamini replied on Mar 02, 2022

Each year equals

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Anonymous F replied on Feb 18, 2022

Value generated from the milk+meat, selling price and costs

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Anonymous E replied on Feb 09, 2022

Anhand der Liter der Milch, welche die Kuh durchschnittlich gibt. Anschließend die Liter der Milch mit dem aktuellen Marktpreis multiplizieren. Zusätzlich würde ich noch den Wert des Fleisches als Schätzwert in meine Überlegungen miteinbeziehen.

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Regina replied on Nov 07, 2021

Liter gegebene Milch x Lebenszeit 

_____________________________________

Preis Milch

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Rochelle replied on Oct 21, 2021

Conduct market research to find out how cows are valued.

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Anonymous D replied on Sep 18, 2021

Estimate the value of cow in the market

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Anonymous B replied on Jun 17, 2020

the weight, the milk it produces it per day and the market price

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