Discounted Cash Flow Public Trading Trading 
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
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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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.
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.
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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