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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. Derive Free Cash Flow to Firm (FCFF).

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Methods and Examples on How to Value a Company

Lake Country Advisors

Below, we’ll delve into several widely used valuation methods, complete with definitions and real-world examples so you can begin mastering them. Discount Cash Flows to Present Value: Use the discount rate to discount the projected future cash flows and the terminal value to their present values.

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Creating an M&A Playbook with ChatGPT as Your Consultant

Midaxo

Establish a valuation methodology : Choose the valuation methods that best suit your company and target industry, such as discounted cash flow, comparable company analysis, or precedent transactions. This document will serve as the basis for finalizing the definitive transaction agreements.

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