Valuation plays a critical role in mergers and acquisitions because acquisition decisions are largely dependent on the estimated worth of target companies. Inaccurate valuation can result in overpayment, poor integration outcomes, destruction of shareholder wealth, and failure to achieve expected synergies. Among the most commonly used valuation methods are the Discounted Cash Flow (DCF) method, Comparable Company Analysis (CCA), and Precedent Transaction Analysis (PTA). While these techniques are widely adopted in developed markets, their reliability in emerging economies remains a subject of debate due to market inefficiencies, political instability, inconsistent financial reporting standards, and macroeconomic volatility.

This research examines the valuation accuracy of DCF, Comparable Company Analysis, and Precedent Transactions in predicting merger and acquisition outcomes across emerging markets between 2015 and 2024. The study analyses selected M&A transactions from India, Brazil, South Africa, Indonesia, and Mexico. The research compares the estimated valuation produced by each method with actual transaction values and post-merger performance indicators.

The study adopts a descriptive and analytical research design using both primary interpretations and secondary financial data collected from annual reports, Bloomberg summaries, investment banking reports, PwC reports, Deloitte publications, and stock exchange disclosures. Statistical tools including Mean Absolute Percentage Error (MAPE), correlation analysis, and comparative variance analysis are applied to evaluate valuation accuracy.

The findings indicate that DCF provides strong long-term valuation accuracy when reliable cash flow projections are available, but its effectiveness declines in highly volatile markets. Comparable Company Analysis performs better in industries with strong peer comparability and transparent market pricing. Precedent Transactions capture real market sentiment and acquisition premiums but are influenced by temporary market cycles and strategic motivations. Overall, the research concludes that no single valuation method is universally superior in emerging markets. A blended valuation approach combining DCF, CCA, and PTA produces the most balanced and realistic valuation estimates.

Keywords: Discounted Cash Flow, Comparable Company Analysis, Precedent Transactions, Emerging Markets, Mergers and Acquisitions, Valuation Accuracy, Corporate Finance.