Lake Country Advisors

AUGUST 8, 2024

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. million Year 2: $2 million / (1 + 0.10)^2 = $1.65

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Valuation Discounted Cash Flow S&P DCF Analysis 97

Sun Acquisitions

OCTOBER 13, 2023

This approach relies on analyzing the market value of comparable publicly traded companies, known as guideline companies or multiples. Income-Based Valuation The income-based valuation method focuses on the target company’s ability to generate future cash flows and assesses the present value of these cash flows.

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Mergers and Acquisitions Valuation Mergers Acquisitions 59

Sun Acquisitions

NOVEMBER 17, 2023

Comparable Company Analysis (CCA): CCA involves comparing the target company to similar publicly traded companies. CTA provides a more industry-specific perspective and is useful when there are limited public comparables. It involves forecasting cash flows and applying a discount rate.

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Mergers and Acquisitions Valuation M&A Mergers 59

Francine Way

JULY 10, 2017

This liquidity feature typically creates a private company discount of around 25-35% range. These concepts will be very important in the next few posts as we discussed the specifics of different valuation methods such as Discounted Cash Flows, Comparable Company, Precedent Transaction, Dividend Discount Model, and more.

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Valuation M&A Equities Shares 130

RKJ Partners

AUGUST 6, 2017

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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M&A Valuation Mergers and Acquisitions Discounted Cash Flow 40