How would you calculate the value of a cow?

PrepLounge: Personal Fit
New answer on Aug 09, 2022
15 Answers
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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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Antonello
Expert
Content Creator
replied on Oct 28, 2019
McKinsey | MBA professor for consulting interviews

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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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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Anonymous C on Dec 22, 2020

and probably not an answer the op was expecting.

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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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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Antonello gave the best answer

Antonello

Content Creator
McKinsey | MBA professor for consulting interviews
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