Remove 2017 Remove Discounted Cash Flow Remove Valuation
article thumbnail

M&A Blog #16 – valuation (Discounted Cash Flow)

Francine Way

As I mentioned in my last post, Discounted Cash Flow (DCF) is a valuation method that uses free cash flow projections, a discount rate, and a growth rate to find the present value estimate of a potential investment. Perform sensitivity / scenario analysis using Monte Carlo analysis.

article thumbnail

Delaware Supreme Court Reverses And Remands Dell MBO Appraisal Decision, Finding The Trial Court Erroneously Disregarded The Deal Price

Shearman & Sterling

On December 14, 2017, the Delaware Supreme Court, in an opinion by Justice Karen L. After a trial, the Court of Chancery had disregarded the deal price and instead applied its own discounted cash flow ("DCF") analysis, arriving at a valuation of $17.62 per share significantly undervalued the stock of Dell.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Delaware Supreme Court Reverses And Remands Appraisal Award But Rejects Bright-Line Presumption In Favor Of Deal Price

Shearman & Sterling

On August 1, 2017, the Delaware Supreme Court, in an opinion by Chief Justice Leo E. per share, by giving equal weight to: (1) the deal price, (2) a comparable companies analysis, and (3) a discounted cash flow analysis. Strine, Jr., per share significantly undervalued the stock of DFC. DFC Global Corp. 518, 2016 (Del.

article thumbnail

Delaware Supreme Court Affirms Delaware Court Of Chancery's Use Of Its Own DCF Method To Determine Fair Value After Controller-Directed Cash-Out Merger

Shearman & Sterling

On October 30, 2017, the Delaware Supreme Court affirmed the decision of the Delaware Court of Chancery determining the fair value of ISN Software Corp. ("ISN") in an appraisal action brought by minority stockholders following the cash-out merger of ISN with its wholly-owned subsidiary, at the direction of its controlling stockholder.

DCF 40
article thumbnail

Delaware Supreme Court Reverses And Remands Dell MBO Appraisal Decision, Finding The Trial Court Erroneously Disregarded The Deal Price

Shearman & Sterling

On December 14, 2017, the Delaware Supreme Court, in an opinion by Justice Karen L. After a trial, the Court of Chancery had disregarded the deal price and instead applied its own discounted cash flow ("DCF") analysis, arriving at a valuation of $17.62 per share significantly undervalued the stock of Dell.

article thumbnail

What is Cash Flow from Operations (CFO)?

Peak Frameworks

This can lead to discrepancies between net income and actual cash flow, as we'll see in a later section. For example, Amazon's net income in 2017 was a small fraction of its operational cash flow due to significant non-cash expenses.

article thumbnail

Delaware Supreme Court Reverses And Remands Appraisal Award But Rejects Bright-Line Presumption In Favor Of Deal Price

Shearman & Sterling

On August 1, 2017, the Delaware Supreme Court, in an opinion by Chief Justice Leo E. per share, by giving equal weight to: (1) the deal price, (2) a comparable companies analysis, and (3) a discounted cash flow analysis. Strine, Jr., per share significantly undervalued the stock of DFC. DFC Global Corp. 518, 2016 (Del.