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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. It is worth noting that each step can justifiably warrant an entire post in itself.

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Top DCF Modeling Courses for Aspiring Finance Professionals

OfficeHours

The discounted cash flow analysis, commonly referred to as the DCF, along with the Leverage Buyout Analysis, commonly referred to as the LBO, are some of the most commonly used and complex financial modeling techniques on the Street today.

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

Francine Way

Discounted Cash Flow (DCF) i s 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. Target’s current stock price: Can be obtained from sources such as Yahoo Finance.

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Methods and Examples on How to Value a Company

Lake Country Advisors

This metric provides a quick snapshot of a company’s total equity value as perceived by the stock market. This valuation reflects the market’s assessment of the company’s equity value based on its stock price and the number of shares available. Determine Discount Rate: Assuming InnovateTech’s WACC is 10%.

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Delaware Chancery Court Employs Transaction Price To Determine Fair Value In Appraisal Action

Shearman & Sterling

Travis Laster of the Delaware Court of Chancery relied on the final deal price to determine the fair value of stock in Lender Processing Services, Inc. ("LPS"), in an appraisal action brought by shareholder petitioners after Fidelity National Financial, Inc. ("Fidelity") acquired LPS. Merion Capital L.P.,

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Delaware Chancery Court Employs Transaction Price To Determine Fair Value In Appraisal Action

Shearman & Sterling

Travis Laster of the Delaware Court of Chancery relied on the final deal price to determine the fair value of stock in Lender Processing Services, Inc. ("LPS"), in an appraisal action brought by shareholder petitioners after Fidelity National Financial, Inc. ("Fidelity") acquired LPS. Merion Capital L.P.,

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Delaware Supreme Court Reverses And Remands Dell MBO Appraisal Decision, Finding The Trial Court Erroneously Disregarded The Deal Price

Shearman & Sterling

per share significantly undervalued the stock of Dell. After a trial, the Court of Chancery had disregarded the deal price and instead applied its own discounted cash flow ("DCF") analysis, arriving at a valuation of $17.62 In re Appraisal of Dell Inc., 565, 2016 (Del.