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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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M&A Blog #14 – valuation (roles, types, equity & enterprise values)

Francine Way

Any structural elements that affect the equity value: Typically includes differences between public vs. private valuations, minority vs. control premiums, insider ownership, sizeable equity offerings, etc. Do they have the cash of debt/equity capacity to bid aggressively? What will someone pay for the company?

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05-19-2023 Newsletter: TONIGHT ONLY: $99 Buyside Starter Kit

OfficeHours

If you’ve ever thought that Buyside might be for you — whether it be Growth Equity, Private Equity, Hedge Funds, Corporate Development, Venture Capital, etc. A Few Reads to Digest Valuation Simplified: How Discounted Cash Flow Modeling Drives Financial Analysis Harness Discounted Cash Flow (DCF) modeling for financial analysis.

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Delaware Chancery Court Grants Appraisal Rights to Shareholders in DFC Global Corporation Following Acquisition by Private Equity Fund

Shearman & Sterling

per share, rather than the price ($9.50 per share) at which DFC was acquired by a private equity fund in June 2014. The judicially-determined appraisal value reflects an equally weighted blend of (1) a discounted cash-flow analysis, (2) a comparable company analysis, and (3) the actual transaction price of the deal.

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The Role of Investment Banking Courses in Career Progression

OfficeHours

You can start learning about WHY bankers utilize analyses like discounted cash flow, leveraged buyout, and comparable companies, rather than learning just how to execute them. investment banking, private equity , VC, etc.) Don’t forget to make sure your hair is neat too (if you’re lucky enough to still have it).

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Methods and Examples on How to Value a Company

Lake Country Advisors

It is calculated by multiplying the current share price by the total outstanding shares. This metric provides a quick snapshot of a company’s total equity value as perceived by the stock market. Determine Discount Rate: Assuming InnovateTech’s WACC is 10%. million Year 2: $2 million / (1 + 0.10)^2 = $1.65

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Delaware Chancery Court Grants Appraisal Rights to Shareholders in DFC Global Corporation Following Acquisition by Private Equity Fund

Shearman & Sterling

per share, rather than the price ($9.50 per share) at which DFC was acquired by a private equity fund in June 2014. The judicially-determined appraisal value reflects an equally weighted blend of (1) a discounted cash-flow analysis, (2) a comparable company analysis, and (3) the actual transaction price of the deal.