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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. Derive Free Cash Flow to Firm (FCFF).

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05-19-2023 Newsletter: TONIGHT ONLY: $99 Buyside Starter Kit

OfficeHours

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Methods and Examples on How to Value a Company

Lake Country Advisors

Market Capitalization Market capitalization is one of the simplest and most commonly used methods for valuing a publicly traded company. Market capitalization is helpful for comparing the relative sizes of different companies within the same industry. Example Scenario: Suppose you want to value a technology company, TechCo.

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M&A Blog #14 – valuation (roles, types, equity & enterprise values)

Francine Way

To answer this question, three things are needed: The company’s intrinsic value: Typically based on cash flow streams available to shareholders, premiums paid in the marketplace, and scarcity associated with the target. The range of value: Typically depends on performance variables (sales, margins, and capital requirements).

Valuation 130
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Why Accurate Financials are Key to Success in Buying, Selling, and Valuing Businesses

How2Exit

With a background in finance and accounting from his time at Deloitte, Ryan has built his expertise in business valuation. Meanwhile, the Income Approach involves evaluating a company’s cash flow against perceived risks, utilizing methods like capitalization of earnings and discounted cash flow models.

Business 130
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The Verdict is In on the Sell Side: Business Valuation Basics

Successful Acquisitions

Valuation serves various functions, such as litigation in partner disputes and divorces, tax and estate matters, accounting and regulatory compliance, and the heart of it all, mergers and acquisitions. It involves adjusting for non-recurring items, operating assets or liabilities, and accounting conversions.

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Terminal Value Calculation using 3 Methods

Wizenius

Terminal Value The terminal value is an essential component of a discounted cash flow (DCF) analysis. The terminal value captures the long-term cash flow generating potential of the company and accounts for the assumption that a business will continue to operate and generate cash flows beyond the forecasted period.