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

Francine Way

Calculate cost of debt, cost of equity, and weighted average cost of capital (WACC). Determine the year-by-year future non-equity claims from the latest 10-K, especially those that will occur during the forecast horizon, and their combined present value. Perform sensitivity / scenario analysis using Monte Carlo analysis.

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M&A Blog #15 – valuation (tools and data preparation)

Francine Way

The following are the tools for valuation: Microsoft Excel - required Monte Carlo simulator - highly recommended (for scenario / sensitivity analysis). Inexpensive Excel-plugin simulator such as @RISK are available for download online. Information listed in the DCF analysis: See the items listed under DCF above.

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