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Methods and Examples on How to Value a Company

Lake Country Advisors

Market Capitalization Market capitalization is one of the simplest and most commonly used methods for valuing a publicly traded company. Example Scenario: Suppose XYZ Corp is a publicly traded technology company with 50 million shares outstanding, and the current share price is $20.

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M&A Blog #17 – valuation (Comparable Company)

Francine Way

Calculating cost of debt, cost of equity, and weighted average cost of capital (WACC). Enterprise Value = Market Capitalization + Total Debt - Total Cash. As we have previously covered what are needed to complete these steps in our DCF discussion , I would refer to those steps (1 through 7) here.

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Buy Side M&A Blog Series - Vol 7 - Valuing The Target

RKJ Partners

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. Essentially, comparable company analysis looks at the value of publicly traded companies. Comparable Company Analysis: This analysis provides “relative” valuation.

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