By Elliot Gulliver-Needham Private equity valuations have built up a reputation for being overvalued, overinflated, or basically just made up. The Bank of England and Financial Conduct Authority have both warned of the “opaque” valuations in private equity, while a media narrative has formed that private equity companies are ‘marking their own homework’. Of course, it’s a fair question, and companies surely must be eager to make it seem like the companies they own are worth a lot more than reality. Nevertheless, when examining the process behind how private equity companies value their holding…