Blog DCF Valuation 
Francine Way
JULY 13, 2017
As I mentioned in my valuation preparation post , Comparable Company is a valuation method that uses metrics of other similar businesses (same industry, size, geography, valuation multiples, etc.) Calculating the Equity Value and the per-share Equity Value - this number would serve as the base case share price valuation.
Francine Way
JULY 12, 2017
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. The major steps of DCF are: Identify extraordinary, unusual, non-recurring items from the target’s 10-Ks and 10-Qs.
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Francine Way
JULY 20, 2017
Thus far, we have covered four popular valuation methods in M&A (DCF, Comparable Company, Precedent Transaction, and LBO) and one less known one that is making its way out of the academic realm into the business world (Dividend Discount Method, DDM). The 2nd valuation method for today is the Liquidation Value method.
Francine Way
JULY 11, 2017
Just as any home appraiser or credit officer does before going through the analytical exercise to produce a score for a home or a borrower, valuation professionals go through several steps of preparation before the actual exercise of producing a number that can be used as a value of a company. A 5- or 10- year historical data is preferable.
Francine Way
JULY 18, 2017
For this valuation post, I wanted to talk about a valuation method that is making its way out of academia and into the real world, a method that is gaining popularity in the world of portfolio management. Projected Book Value of Equity at the end of the 15 years = from the proforma balance sheet that we developed in our DCF post.
Francine Way
JULY 14, 2017
As I mentioned in my valuation preparation post , Precedent Transaction is a valuation method that uses the price paid for similar businesses in the past as indicators to a company’s value. The 1st step in Precedent Transaction is to derive the appropriate market multiples (or range of multiples) and control premium for the valuation.
Francine Way
JULY 19, 2017
Thus far, we have discussed five valuation methods: DCF, Comparable Company, Precedent Transaction, LBO, and Dividend Discount Model (DDM). So, a good valuation model has to take into account the possibilities of a variable having multiple values along with each value’s probability of occurring.
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