article thumbnail

Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

Context of DCF: There are three main approaches to calculating a company’s value. the intrinsic or income-based approach, also known as an entity approach, then there is also 2. the asset-based approach also known as the cost-based approach, and finally 3. The first is 1.

article thumbnail

M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

The terminal value can be estimated using the perpetuity growth model or the exit multiple approach. By adding up all the discounted future cash flows and the discounted terminal value, the Net Present Value (NPV) of the business can be obtained.