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M&A Blog #15 – valuation (tools and data preparation)

Francine Way

Access to credible sources of information such as SEC EDGAR database , Treasury.gov , OECD GDP Forecast , Mergent Online, S&P Capital IQ, Hoovers, ValueLine, Yahoo Finance , MarketWatch , and Damodaran Online. to find the value estimate of a potential investment. A 5- or 10- year historical data is preferable.

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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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Post 4 - Why does the conventional DCF not work for valuing a start-up/young firm?

Wizenius

The quick fix - Venture Capital Method of valuation for start-ups Previously, as elaborated in my previous posts in this thread, the conventional DCF falls apart when it comes to valuing a start-up/young firm A quick (and a dirty) fix to the above problem is the VC Method where 1) Estimate revenue or earnings in the near future of the start-up (typically (..)

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Evaluating Asset Management Companies: Key Metrics and Methodologies

MergersCorp M&A International

Asset management companies are integral players in the financial services sector, managing investments on behalf of clients, which can include individuals, institutions, and corporations. Key metrics used include Price/Earnings (P/E) ratios, Price/AUM ratios, and enterprise value ratios (EV/EBITDA).

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The Dividend Discount Model (DDM): The Black Sheep of Valuation?

Mergers and Inquisitions

But people who aim for investment banking roles are very much into those bells and whistles, so questions about the DDM and other “exotic” methodologies began rolling in. In other words, you profit based on the company’s dividend s and the potential increases in its stock price over time.

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Metals & Mining Investment Banking: The Full Guide to Ground Zero for the Energy Transition

Mergers and Inquisitions

Metals & mining investment banking used to be a “sleepy” group. But let’s forget about the children temporarily and focus on the verticals, the drivers, deal examples, and the exit opportunities if you escape from the underground mines: What Is Metals & Mining Investment Banking?

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Am I required to create a Financial Model from scratch or can I rely on a template?

Wizenius

Lets see how this works Most of the variations of Financial models in investment banking mostly revolve around 1) DCF 2) M&A 3) LBO 4) Comparable & Transaction Comps Idea Bank - From Scratch to Template: Build a comprehensive version of each of the above varieties of financial models from scratch.