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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. Derive Free Cash Flow to Firm (FCFF).

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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 Supreme Court Reverses And Remands Appraisal Award But Rejects Bright-Line Presumption In Favor Of Deal Price

Shearman & Sterling

per share significantly undervalued the stock of DFC. per share, by giving equal weight to: (1) the deal price, (2) a comparable companies analysis, and (3) a discounted cash flow analysis. Strine, Jr., DFC Global Corp. Muirfield Value Partners, L.P., 518, 2016 (Del. per share, 8.4% higher than the deal price of $9.50

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M&A Blog #14 – valuation (roles, types, equity & enterprise values)

Francine Way

Do they have the cash of debt/equity capacity to bid aggressively? Employee Stock Ownership Plan (ESOP): ESOPs are programs that allow employees to become partial owners of firms, typically through equity shares as a part of compensation. This liquidity feature typically creates a private company discount of around 25-35% range.

Valuation 130
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Delaware Supreme Court Reverses And Remands Appraisal Award But Rejects Bright-Line Presumption In Favor Of Deal Price

Shearman & Sterling

per share significantly undervalued the stock of DFC. per share, by giving equal weight to: (1) the deal price, (2) a comparable companies analysis, and (3) a discounted cash flow analysis. Strine, Jr., DFC Global Corp. Muirfield Value Partners, L.P., 518, 2016 (Del. per share, 8.4% higher than the deal price of $9.50

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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.

Valuation 130
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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. This means that the method evaluates the future cash flow of the company and then discounts those cash flows to the present day.

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