Lake Country Advisors

AUGUST 8, 2024

Discounted Cash Flow (DCF) Analysis Discounted Cash Flow (DCF) Analysis is a valuation method that estimates the value of a company based on its projected future cash flows, which are then discounted to their present value. DCF is particularly useful for valuing startups or companies with predictable cash flow patterns.

Valuation 97

Valuation Discounted Cash Flow S&P DCF Analysis 97

Francine Way

JULY 12, 2017

Calculate cost of debt, cost of equity, and weighted average cost of capital (WACC). For interest income and expense, I prefer to state them as percentages of the average debt balance of the last two years. It is a good practice to verify the intended debt-vs-total-capital balance post-transaction when possible.

Discounted Cash Flow 130

Discounted Cash Flow Valuation M&A DCF 130

Francine Way

JULY 11, 2017

To perform this analysis, the following are needed: A peer group of 5 or more similar businesses: Can be obtained from sources such as S&P Capital IQ report; or individual research. Information listed in the DCF analysis: See the items listed under DCF above.

Valuation 130

Valuation M&A DCF Financial Statement 130

RKJ Partners

AUGUST 6, 2017

Below are the six recognized methodologies with short explanations of each: Discounted Cash Flow (DCF) Analysis: This analysis derives an ‘intrinsic’ value of a company. Leverage Buyout (LBO) Analysis: LBO analysis focuses on a company’s ability to generate cash flow.

M&A 40

M&A Valuation Mergers and Acquisitions Discounted Cash Flow 40