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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. 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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Methods and Examples on How to Value a Company

Lake Country Advisors

Below, we’ll delve into several widely used valuation methods, complete with definitions and real-world examples so you can begin mastering them. DCF is particularly useful for valuing startups or companies with predictable cash flow patterns. million Year 2: $2 million / (1 + 0.10)^2 = $1.65 million + $1.65 million + $2.25

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Equity Research vs. Investment Banking: Careers, Compensation, Exits, and AI/Automation Risk

Mergers and Inquisitions

For example, in IB interviews, youll have to know about accounting, valuation/DCF analysis, merger models, and LBO models plus the usual fit/behavioral questions , your resume walkthrough , and a few recent deals. Investment Banking: Outlook, AI, and Automation Equity Research vs. Investment Banking: Which Ones Right for You?