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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. Per-share Equity Value = Equity Value / Number of shares outstanding.

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05-19-2023 Newsletter: TONIGHT ONLY: $99 Buyside Starter Kit

OfficeHours

A Few Reads to Digest Valuation Simplified: How Discounted Cash Flow Modeling Drives Financial Analysis Harness Discounted Cash Flow (DCF) modeling for financial analysis. Use forum feedback for career advancement. Learn to interpret anonymous blog critiques as a tool for professional success.

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The Role of Investment Banking Courses in Career Progression

OfficeHours

You can start learning about WHY bankers utilize analyses like discounted cash flow, leveraged buyout, and comparable companies, rather than learning just how to execute them. You are meant to put in the work in order to become the best finance mind that can eventually lead you to a coveted buyside role.

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Delaware Chancery Court Grants Appraisal Rights to Shareholders in DFC Global Corporation Following Acquisition by Private Equity Fund

Shearman & Sterling

per share, rather than the price ($9.50 per share) at which DFC was acquired by a private equity fund in June 2014. The judicially-determined appraisal value reflects an equally weighted blend of (1) a discounted cash-flow analysis, (2) a comparable company analysis, and (3) the actual transaction price of the deal.

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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? The status of the acquirer’s own share price will impact its acquisition currency. In other words, the company or its other shareholders can buy back a shareholder’s outstanding shares at a predetermined valuation (typically less than a 3rd-party acquisition).

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Methods and Examples on How to Value a Company

Lake Country Advisors

It is calculated by multiplying the current share price by the total outstanding shares. Example Scenario: Suppose XYZ Corp is a publicly traded technology company with 50 million shares outstanding, and the current share price is $20. Determine Discount Rate: Assuming InnovateTech’s WACC is 10%. million.

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