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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. 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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M&A Blog #20 – valuation (Dividend Discount Model - DDM)

Francine Way

Projected Book Value of Equity at the end of the 15 years = from the proforma balance sheet that we developed in our DCF post. Because this step is similar in this method as it is in the other valuation methods (DCF, Comparable Company, etc.), To download @RISK for a free trial version, click here. mature, profitable companies).

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