Mergers and Inquisitions

MAY 3, 2023

To be fair, in some industries – like commercial banks and insurance within FIG – the DDM is a core valuation methodology. It can be useful for certain companies, such as power and utility firms and midstream (pipeline) operators in oil & gas … …but it’s also much harder to set up and use than a standard DCF.

Valuation 64

Valuation DCF Debt Financial Modeling 64

Software Equity Group

FEBRUARY 26, 2024

DCF: Discounted Cash Flow Estimates a company’s value and forecasts future cash flow by incorporating the time value of money. DCF is used when making investment decisions and understanding a business’s current and future value. It determines a more constant rate of return on business growth that naturally fluctuates over time.

Discounted Cash Flow 52

Discounted Cash Flow M&A Profitability S&P 52

Mergers and Inquisitions

NOVEMBER 20, 2024

Plausible Unit Economics – Many growth companies lose money early on, but there must be a path to profitability. You could still use a DCF , but it would have to go far into the future (e.g., I also like everyone I’ve met here, such as [Names] , and would fit in with your culture.” healthy gross margins ), this will be very difficult.

Private Equity 59

Private Equity Equities Capital Valuation 59