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Methods and Examples on How to Value a Company

Lake Country Advisors

Accurate and appropriate valuation is one of the pillars of maximizing the profits from a business sale. This metric provides a quick snapshot of a company’s total equity value as perceived by the stock market. However, company valuation isn’t as simple as slapping a price on your business.

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M&A Blog #16 – valuation (Discounted Cash Flow)

Francine Way

All of these information can be found in the most current 10-K and 10-Q, a better approximation is listed below in our calculation of the cost of equity: Equity as a fraction of total capital = (current stock price * the number of shares outstanding from the most current 10-K) / (the sum of debt and equity).

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Growth Equity Interview Questions: Full List, Answers, and Differences vs. Venture Capital and Private Equity

Mergers and Inquisitions

Plausible Unit Economics – Many growth companies lose money early on, but there must be a path to profitability. A: Unlike most PE deals, traditional growth equity deals do not use debt and are for minority stakes in companies, but they often have more “structure” via liquidation preferences and preferred stock.