DCF, Shares and Stock - Investment Banking Today

M&A Blog #20 – valuation (Dividend Discount Model - DDM)

Francine Way

JULY 18, 2017

Forecasting the future stock price at the end of the forecast horizon, as well as its present value. It is the forecasting of future stock price at the end of the forecast horizon along with its present value calculation. We should have 1 Projected Share Price and 1 PV (Projected Share Price) at this point.

Valuation

Valuation M&A DCF Shares

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

Francine Way

JULY 12, 2017

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.

Discounted Cash Flow

Discounted Cash Flow Valuation M&A DCF

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

Francine Way

JULY 11, 2017

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. or as a premium percentage to current target’s stock price.

Valuation

Valuation M&A DCF Financial Statement

M&A Blog #18 – valuation (Precedent Transaction)

Francine Way

JULY 14, 2017

Calculating implied transaction Total Enterprise Value (TEV) from the company’s most recent financial data and Consideration Per share. The next (2nd) step in Precedent Transaction calls for the calculation of our own proposed transaction’s TEV from the company’s most recent financial data and Consideration Per Share.

Valuation

Valuation M&A Shares DCF

M&A Blog #21 – valuation (scenario / sensitivity analysis)

Francine Way

JULY 19, 2017

Thus far, we have discussed five valuation methods: DCF, Comparable Company, Precedent Transaction, LBO, and Dividend Discount Model (DDM). An example of this technique include the changes of stock value given differing: WACCs and long-term free cash flow growth rates. how likely is it that the stock price is that low?).

Valuation

Valuation M&A DCF Stock

Methods and Examples on How to Value a Company

Lake Country Advisors

AUGUST 8, 2024

It is calculated by multiplying the current share price by the total outstanding shares. This metric provides a quick snapshot of a company’s total equity value as perceived by the stock market. DCF is particularly useful for valuing startups or companies with predictable cash flow patterns. million + $1.65

Valuation

Valuation Discounted Cash Flow S&P DCF Analysis

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

Shearman & Sterling

DECEMBER 19, 2017

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 per share reflecting an approximate 28% premium. In re Appraisal of Dell Inc.,

Discounted Cash Flow

Discounted Cash Flow DCF Private Equity Shares

Delaware Chancery Court Finds No Fiduciary Duty Breach, Notwithstanding Entire Fairness Review, And Determines Appraisal Value To Be Well Below Deal Price

Shearman & Sterling

JULY 25, 2017

. ("Softbank") on claims of breaches of fiduciary duty and aiding and abetting, respectively, in connection with Sprint's merger with Clearwire Corporation ("Clearwire"); and (ii) appraised the fair value of Clearwire's stock at the time of the merger, awarding the dissenting stockholder petitioners $2.13 Read more

Discounted Cash Flow

Discounted Cash Flow DCF Corporation Mergers

The Dividend Discount Model (DDM): The Black Sheep of Valuation?

Mergers and Inquisitions

MAY 3, 2023

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. The main argument in favor of the DDM is that it best represents what happens in real life when you buy a stock.

Valuation

Valuation DCF Debt Financial Models

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

Shearman & Sterling

DECEMBER 19, 2017

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 per share reflecting an approximate 28% premium. In re Appraisal of Dell Inc.,

Discounted Cash Flow

Discounted Cash Flow DCF Private Equity Shares

Delaware Chancery Court Finds No Fiduciary Duty Breach, Notwithstanding Entire Fairness Review, And Determines Appraisal Value To Be Well Below Deal Price

Shearman & Sterling

JULY 25, 2017

. ("Softbank") on claims of breaches of fiduciary duty and aiding and abetting, respectively, in connection with Sprint's merger with Clearwire Corporation ("Clearwire"); and (ii) appraised the fair value of Clearwire's stock at the time of the merger, awarding the dissenting stockholder petitioners $2.13 Read more

Discounted Cash Flow

Discounted Cash Flow DCF Corporation Mergers

Growth Equity: The Child Prodigy of Private Equity and Venture Capital, or an Artifact of Easy Money?

Mergers and Inquisitions

MARCH 13, 2024

the Founders sell some shares to take money off the table, but “the company” doesn’t get any of that cash). However, they often invest using preferred stock with liquidation preferences attached to limit their downside risk (similar to VCs). Debt financing is much more common, and the GE firm is often the first institutional investor.

Private Equity

Private Equity Equities Capital Portfolio

Keeping Up with Delaware Appraisal Jurisprudence Since Aruba: Deal Price Reigns Supreme, But Will Recent Decision Lead to More Arbitrage?

Cooley M&A

JULY 9, 2021

To determine the fair value of Regal’s common stock at the effective time of the merger, the court reduced the deal price by $3.77/share, share, which represented the portion of the deal price attributable to projected synergies. share to reflect the change in value of the target between signing and closing.

Mergers and Acquisitions

Mergers and Acquisitions Sale Shares Entertainment

Venture Capital Interview Questions: What to Expect and How to Prepare

Mergers and Inquisitions

SEPTEMBER 20, 2023

A: As with hedge fund stock pitches , you need to research markets and companies and develop 2-3 solid ideas here. A: The “pre-money valuation” is a startup’s Equity Value before it issues new shares to the VC firm, and the “post-money valuation” is the startup’s Equity Value after that happens. Q: How do you value a biotech startup?

Capital

Capital Valuation Investment Portfolio

Growth Equity Interview Questions: Full List, Answers, and Differences vs. Venture Capital and Private Equity

Mergers and Inquisitions

NOVEMBER 20, 2024

The company is a leader in the nonalcoholic beer market, with almost 20% market share currently. A: Unlike most PE deals, traditional growth equity deals do not use debt and are for minority stakes in companies, but they often have more “structure” via liquidation preferences and preferred stock.

Private Equity

Private Equity Equities Capital Valuation

Investment Banking Today

M&A Blog #20 – valuation (Dividend Discount Model - DDM)

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

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

M&A Blog #18 – valuation (Precedent Transaction)

M&A Blog #21 – valuation (scenario / sensitivity analysis)

Methods and Examples on How to Value a Company

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

Delaware Chancery Court Finds No Fiduciary Duty Breach, Notwithstanding Entire Fairness Review, And Determines Appraisal Value To Be Well Below Deal Price

The Dividend Discount Model (DDM): The Black Sheep of Valuation?

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

Delaware Chancery Court Finds No Fiduciary Duty Breach, Notwithstanding Entire Fairness Review, And Determines Appraisal Value To Be Well Below Deal Price

Growth Equity: The Child Prodigy of Private Equity and Venture Capital, or an Artifact of Easy Money?

Keeping Up with Delaware Appraisal Jurisprudence Since Aruba: Deal Price Reigns Supreme, But Will Recent Decision Lead to More Arbitrage?

Venture Capital Interview Questions: What to Expect and How to Prepare

Growth Equity Interview Questions: Full List, Answers, and Differences vs. Venture Capital and Private Equity

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