Francine Way

JULY 13, 2017

While different valuation professionals differ on which multiples to use based on the target’s industry, and so on; a few multiples have became analysts favorites: TEV/Revenue, TEV/EBITDA, and TEV/Tangible Book Value. Tangible Book Value = Book Value of Equity - Goodwill. TEV stands for Total Enterprise Value.

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Sun Acquisitions

OCTOBER 13, 2023

By comparing key financial metrics such as price-to-earnings (P/E) ratios, price-to-sales (P/S) ratios, and price-to-book (P/B) ratios, analysts can estimate the target company’s value. Discounted Cash Flow (DCF) analysis is a commonly used income-based valuation technique.

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Mergers and Acquisitions Valuation Mergers Acquisitions 59

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.

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Discounted Cash Flow Valuation M&A DCF 130

Francine Way

JULY 18, 2017

To perform this forecast, we need the target’s dividend history again, the book value of equity and year-end shares outstanding, and the stock prices at year-end. Market Price as multiple of Book Value of Equity at year-end = Market Price at year-end / Book Value of Equity.

Valuation 130

Valuation M&A DCF Shares 130

How2Exit

FEBRUARY 23, 2023

Concept 6: Value Assets With DCF (Discounted Cash flow) One of the most important tools in the negotiation process is the discounted cash flow (DCF) method. The equation for the DCF method is CFT divided by T, where CFT equals cash flow in period T, and R equals discount rate.

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Sun Acquisitions

NOVEMBER 17, 2023

The valuation is based on key financial metrics such as Price-to-Earnings (P/E) ratios, Price-to-Sales (P/S) ratios, or Price-to-Book (P/B) ratios. Discounted Cash Flow (DCF): DCF is a fundamental valuation method that estimates the present value of a company’s future cash flows.

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Mergers and Acquisitions Valuation M&A Mergers 59

Francine Way

JULY 20, 2017

Thus far, we have covered four popular valuation methods in M&A (DCF, Comparable Company, Precedent Transaction, and LBO) and one less known one that is making its way out of the academic realm into the business world (Dividend Discount Method, DDM). The 1st one for today is the Tangible Book Value (TBV) method.

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