What type of chart is commonly used to present different valuation methodologies?

The football field chart is the most suitable choice for presenting different valuation methodologies because it visually communicates a range of valuations derived from various approaches, such as discounted cash flow, comparable company analysis, and precedent transactions. This type of chart allows for an easy comparison across these methodologies, as it displays a horizontal bar with different segments representing the outcomes from each valuation method. Each segment can be placed at different levels, giving a clear visual representation of how the methodologies converge or diverge in value estimates.

The football field chart is particularly effective in financial contexts where stakeholders need to quickly grasp the relative valuation ranges, making it a preferred tool among investment bankers, financial analysts, and corporate finance professionals. In contrast, bar charts, pie charts, and line graphs each serve distinct purposes and may not effectively convey the same breadth and comparison in valuations that a football field chart can. For example, bar charts are better suited for comparing quantities, pie charts visualize parts of a whole, and line graphs are primarily used to show trends over time, but none of these formats can illustrate multiple valuation approaches side-by-side as effectively as the football field chart.