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. Calculate cost of debt, cost of equity, and weighted average cost of capital (WACC).

Discounted Cash Flow 130

Discounted Cash Flow Valuation M&A DCF 130

Lake Country Advisors

AUGUST 8, 2024

Comparable Company Analysis (CCA) Comparable Company Analysis (CCA) is a valuation method that involves comparing a company’s financial metrics to those of similar companies within the same industry. Accurate and appropriate valuation is one of the pillars of maximizing the profits from a business sale.

Valuation 97

Valuation Discounted Cash Flow S&P DCF Analysis 97

Francine Way

JULY 11, 2017

The following are the tools for valuation: Microsoft Excel - required Monte Carlo simulator - highly recommended (for scenario / sensitivity analysis). DCF can be used on young companies with no historical financial (forward projections are used instead) as long as it is understood that such valuations will have a huge margin of error.

Valuation 130

Valuation M&A DCF Financial Statement 130

Focus Investment Banking

APRIL 7, 2024

Cost of Leveraged Buyouts: PE firms often use leveraged buyouts (LBOs) to acquire companies, relying heavily on debt financing. Lower interest rates make this debt cheaper, enabling PE firms to execute more buyouts or bid higher for target companies. This market trend can raise the comparative value of similar businesses.

Private Equity 52

Private Equity Valuation Equities Business 52

Wizenius

JUNE 25, 2023

The WACC considers the cost of debt and equity financing and reflects the risk associated with the company's capital structure. Adjustments for Negative Cash Flows: Incorporate adjustments in the DCF analysis to account for the negative cash flows in the initial years.

Financial Modeling 52

Financial Modeling Financial Models Investment Banking DCF Analysis 52

Wizenius

JUNE 5, 2023

Highlight your experience in performing company valuations using various methods, such as discounted cash flow (DCF) analysis, comparable company analysis, or precedent transactions. In the highly competitive field of investment banking, a well-crafted resume can be the key to landing coveted interview opportunities.

Investment Banking 52

Investment Banking Investment Bank Banking 52

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. Precedent Transaction Analysis: Similar to the comparable company methodology, it also provides “relative” valuation.

M&A 40

M&A Valuation Mergers and Acquisitions Discounted Cash Flow 40