Lake Country Advisors

AUGUST 8, 2024

Market Capitalization Market capitalization is one of the simplest and most commonly used methods for valuing a publicly traded company. Example Scenario: Suppose XYZ Corp is a publicly traded technology company with 50 million shares outstanding, and the current share price is $20. million Year 2: $2 million / (1 + 0.10)^2 = $1.65

Discounted Cash Flow

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). TBV is calculated as follow: TBV = total assets - total liabilities - goodwill.

Valuation

Mergers and Inquisitions

MAY 3, 2023

It can be useful for certain companies, such as power and utility firms and midstream (pipeline) operators in oil & gas … …but it’s also much harder to set up and use than a standard DCF. The basic set of steps looks like this: Step 1: Forecast Revenue and Expenses This is the same as in any other 3-statement model or DCF.

Valuation

Sun Acquisitions

OCTOBER 13, 2023

This approach relies on analyzing the market value of comparable publicly traded companies, known as guideline companies or multiples. Discounted Cash Flow (DCF) analysis is a commonly used income-based valuation technique. Market-Based Valuation One widely used valuation technique in M&A is market-based valuation.

Mergers and Acquisitions

Sun Acquisitions

NOVEMBER 17, 2023

Comparable Company Analysis (CCA): CCA involves comparing the target company to similar publicly traded companies. Discounted Cash Flow (DCF): DCF is a fundamental valuation method that estimates the present value of a company’s future cash flows. It involves forecasting cash flows and applying a discount rate.

Mergers and Acquisitions

Mergers and Inquisitions

DECEMBER 6, 2023

They do this by setting up entire teams (“pods”) for specific sectors, having each team learn their stocks or other securities in-depth, and then trading frequently based on catalysts and changes in investor sentiment. It’s more about “trading” and less about investing (but this could be a pro for the right person).

Funds

Wizenius

MAY 23, 2024

The urban legend in IB goes like this “Specialize in being a jack of all trades and a master of. Start the meeting with a shorter version of the topic under discussion and then ask if any further details are needed 3) Well Rounded Research: Topic of the meeting/discussion is like a “centre” of the circle. well, maybe a few!"

Investment Banking

Peak Frameworks

MAY 2, 2024

Valuation Techniques: Employing discounted cash flow (DCF) and comparative analysis to ascertain the target’s value. The Federal Trade Commission (FTC) and the Department of Justice (DOJ) are key regulatory bodies overseeing these mergers.

Mergers

Mergers and Inquisitions

JANUARY 10, 2024

You will very rarely get exposed to the type of financial modeling that bankers complete: 3-statement models , DCF models , M&A models , LBO models , and so on. You might have a shot at sales & trading if you’ve had experience with relevant products, such as FX hedges for international clients, but even that is a stretch.

Investment Banking

iMerge Advisors

APRIL 9, 2025

For example, a high-growth SaaS company with 90%+ gross margins and low churn might command a 610x ARR multiple, while a slower-growing legacy software business might trade at 35x EBITDA. For a deeper dive into valuation methodology, see our article on Business Evaluation Methods.

Sale

Mergers and Inquisitions

NOVEMBER 1, 2023

Mispriced Companies and Assets – Some mature healthcare firms trade at low valuation multiples , often because the market misunderstands their contracts, revenue, or track record. Interview Guide : There’s a DCF case study based on Attendo AB, a healthcare facility company in Sweden. For example, in the U.S.,

Private Equity

Cooley M&A

JULY 9, 2021

Panera Bread was a publicly traded company that JAB Holdings B.V. January 2020) +12% DCF Private target; unreliable sales process Final (affirmed on appeal on January 22, 2021) Synapse Wireless (VC Slights – Del. took private in 2017 for $315/share.

Mergers and Acquisitions

Mergers and Inquisitions

APRIL 19, 2023

Valuation , such as the different multiples used for mining companies and the NAV model in place of the DCF (see below). Valuation – Since many people perceive gold as a stable, irreplaceable store of value, gold miners often trade at higher multiples than base metal miners (see the examples below).

Investment Banking

RKJ Partners

AUGUST 6, 2017

Below are the six recognized methodologies with short explanations of each: Discounted Cash Flow (DCF) Analysis: This analysis derives an ‘intrinsic’ value of a company. Essentially, comparable company analysis looks at the value of publicly traded companies. Comparable Company Analysis: This analysis provides “relative” valuation.

M&A

Mergers and Inquisitions

OCTOBER 18, 2023

Many firms put capital markets groups within “Investment Banking,” but some include it within Sales & Trading or “Global Markets.” You’ll also have to spend time learning/reviewing the technical questions, as the day-to-day work in ECM and DCM is far removed from subjects like Equity Value vs. Enterprise Value or a DCF model.

Capital Market

Mergers and Inquisitions

JULY 19, 2023

But if you consider long-only or “long-biased” funds, the liquidity and Beta are often higher: A fund that holds only stocks can easily sell them, and the lack of short positions makes it easier to unwind trades. Think: a deep review of companies’ financial statements, 3-statement models , and DCF-based valuations. lower intensity).

Funds

Mergers and Inquisitions

APRIL 5, 2023

Trade Surpluses – Some countries, like Singapore, are not rich in commodities but serve as trade hubs and generate significant revenue from these activities. You won’t have time to build a simple DCF model or do more than look at multiples and qualitative descriptions, so you must think and act quickly based on limited information.

Recruitment

Mergers and Inquisitions

MARCH 5, 2025

Example Biotech Trades What Makes Biotech Hedge Funds Different? Many biotech stocks are relatively uncorrelated with the broader market because they trade based on catalysts rather than GDP growth, inflation, interest rates, or consumer spending. Of course, many other trades are possible. And What Do They Do?

Funds

Mergers and Inquisitions

NOVEMBER 20, 2024

billion market cap that trades at 7x trailing revenue on expected revenue growth rates of 15 – 20% and projected EBITDA margins of ~20%. You could still use a DCF , but it would have to go far into the future (e.g., 10 – 20 years) so that the growth rate can fall to a much lower level by the end.

Private Equity